Let court decide dispute over Sarawak’s O&G ownership, says Premier

KUCHING (Jan 27): The dispute over Sarawak’s oil and gas ownership should await the court’s decision, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He was responding to recent remarks by Minister of Law and Institutional Reform Datuk Seri Azalina Othman Said, who said the Malaysia Agreement 1963 (MA63) does not address the regulation of petroleum resources.

“Wait for the court’s decision,” he told reporters after launching the Asia Pacific Aerospace Conference and Exhibition (Apace) 2026 at the Borneo Convention Centre Kuching.

The dispute follows a motion filed by Petronas in the Federal Court earlier this month seeking a definitive ruling on the legal framework governing its operations in Sarawak.

In a written parliamentary reply, Azalina said the oil and gas industry is governed solely by federal laws, particularly the Petroleum Development Act (PDA) 1974, which grants Petronas exclusive ownership and control of petroleum resources nationwide, with no role assigned to state-owned entities such as Petroleum Sarawak Bhd (Petros).

Sarawak, however, has maintained that its rights over oil and gas resources are preserved under the Oil Mining Ordinance (OMO) 1958, a state law enacted before the formation of Malaysia.

The state has repeatedly said these rights were never surrendered and are protected under the Federal Constitution.