Chong suggests 30 pct Sarawak equity in Petronas as alternative to court battle

KUCHING (Jan 29): Taking its dispute with Petroleum Sarawak Berhad (Petros) to court may not be the most effective solution for Petroliam National Berhad (Petronas), said Stampin MP Chong Chieng Jen.

Chong suggested that Sarawak be granted a 30 per cent equity stake in Petronas and 30 per cent representation on its Board of Directors, arguing that this approach would benefit both parties and the country.

“Resorting to the courts produces winners who take all and losers who lose everything.

“This situation benefits no one and is not good for the nation,” Chong said during the debate on the Motion of Thanks for the Royal Address at Parliament in Kuala Lumpur.

“With a 30 per cent equity stake, Sarawak would be entitled to 30 per cent of all future dividends paid by Petronas.

“Petronas would remain the country’s principal regulator. This way, whatever success Petronas achieves, Sarawak would share in it,” he explained.

Despite repeated announcements by Prime Minister Datuk Seri Anwar Ibrahim and the Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg that a settlement had been reached, legal disputes between Petronas and Petros continue in court.

Chong, who is also Sarawak DAP chairman, warned that as long as both parties claim rights over the same natural resources, conflict is evitable.

“Let us progress and prosper together,” he said.

Responding to a query by Kapit MP Dato’ Seri Alexander Nanta Linggi, Chong noted that the proposed 30 per cent participation equity reflects Sarawak’s longstanding contribution to the national oil and gas industry.

Earlier this month, Petronas filed a motion at the Federal court in Putrajaya seeking clarity on the regulatory framework governing its operations in Sarawak.

The respondents in the case are the federal and state governments.

Petronas said the application aims to ensure that the company continues to operate in full compliance with applicable laws and sound governance practices.

It stressed that the move is not intended to challenge Sarawak’s development aspirations or the role of Petros.

The oil company added that while progress has been made on many commercial arrangements and partnerships — including the signing of Commercial Settlement Agreement (CSA) in 2020 — differences remain that have created uncertainty regarding Petronas’s obligations in the state.