PBB Info chief warns PETRONAS legal move against Sarawak could harm economy, fracture ties, spark political rifts

Idris Buang

By DayakDaily Team

KUCHING, Sept 9: Petroliam Nasional Berhad’s (PETRONAS) potential legal action against Sarawak could have far-reaching consequences, not only threatening Malaysia’s economy but also straining Federal-State relations and triggering political rifts.

This caution was voiced by Parti Pesaka Bumiputera Bersatu (PBB) Sarawak Information chief, Dato Idris Buang, in response to reports that the national oil corporation is considering taking legal steps to maintain control over Sarawak’s oil and gas resources, which it has dominated since 1974.

Idris reminded that Prime Minister Datuk Seri Anwar Ibrahim has, on numerous occasions, affirmed the importance of respecting and fulfilling the Malaysia Agreement 1963 (MA63), which safeguards the special position of Sarawak and Sabah.

“I must raise this red flag because we cannot afford to disrupt the excellent relations between Sarawak and the Madani government under PMX (Anwar), which we regard as the best Federal-State relationship since the formation of Malaysia,” he said.

“We deeply appreciate and must protect this strong bond as long as we are Malaysians striving for greater progress. The parties involved must honour this by seriously working to fulfill the terms of MA63 and respecting the Sarawak Constitution,” he said in a statement today.

Idris, who is also the Deputy Speaker of the Sarawak Legislative Assembly, emphasised that Sarawak’s sovereign rights over its oil, gas, land, forests, and other natural resources are specifically enshrined in MA63, and by extension, the Federal Constitution.

“This agreement preserves Sarawak’s unique position and autonomy in many areas. We must give meaning to it as without these, Malaysia itself would never have been formed,” he said.

He asserted that for PETRONAS to disregard what is stipulated in MA63 would not be easy, as it would face a rigorous legal defense amd counteraction from Sarawak.

He further warned that any court action could lead to prolonged legal battles, with related issues surfacing over time.

A key issue, according to Idris, is the validity of PETRONAS’ authority under the Petroleum Development Act 1974 (PDA74), which has long been questioned. He pointed out that many legal experts have argued that the PDA was passed without constitutional approval from the Sarawak and Sabah Legislative Assemblies.

“Despite the PDA, Sarawak’s sovereign rights to its natural resources remain intact. All laws relating to these resources, including the Sarawak Land Code, Oil Mining Ordinance (OMO) 1958, and the Forest Ordinance, remain in force,” he added.

Idris also referenced the Queen in Council Order of 1954, registered with the United Nations, which outlined Sarawak’s territorial boundaries, including its continental shelf, seabeds, and subsoil.

These rights, he explained, are reinforced by the Geneva Convention of 1958 and the United Nations Convention on the Law of the Sea (UNCLOS) 1982, which extend territorial claims up to 200 nautical miles.

“The Federal government is responsible for subscribing to these treaties on behalf of Malaysia, but when it comes to natural resources within the continental shelf like Sarawak, domestic laws take precedence,” he said.

Idris stressed the importance of maintaining Malaysia’s harmony and prosperity, warning against any actions that could cause political instability.

“PETRONAS, as a national corporation, must look beyond mere business interests and prioritise the nation’s socio-political stability,” he stressed.

He expressed confidence that Sarawak, as a loyal member of the Federation, would continue to seek mutual cooperation while respecting the laws and rights safeguarded by MA63.

“There is no better option than for both parties to explore and strengthen cooperation in areas of shared interest,” he concluded. — DayakDaily