Premier clarifies no issue between Sarawak, PETRONAS, cites misinformation for confusion as discussions continue

Abang Johari speaks during a press conference at APPEC 2024 in Singapore on Sept 9, 2024. Screenshot taken from a recorded video shared by Sarawak Public Communication Unit (UKAS)

By Shikin Louis

KUCHING, Sept 9: Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has clarified that there is no issue between the Sarawak government and Petroliam Nasional Berhad (PETRONAS) in light of potential legal dispute over oil and gas rights in Sarawak, as discussions are still ongoing.

He attributed the confusion to ‘misinformation and incorrect data’ reported in the media over the past two days.

Abang Johari clarified that the Sarawak government, through State-owned Petroleum Sarawak Berhad (Petros), has been designated as the exclusive gas aggregator in Sarawak, a role previously held by PETRONAS.

“Petros will work together with PETRONAS and discussion between the two parties are ongoing,” he said in a recorded press conference video taken during Asia Pacific Petroleum Conference (APPEC) 2024 held at Raffles City Convention Centre in Singapore today.

Responding to a reporter’s question, Abang Johari reassured that existing long-term liquefied natural gas (LNG) contracts with partners like South Korea and Japan will remain unaffected.

“Nothing is happening. You must remember that the Sarawak government has equity in LNG, and because we have a vested interest in LNG, I don’t think we want to destroy it. So, the current contracts we have with our customers remain intact.

“The only fear that the industry has is if we were to take over the aggregator function, it may affect the supply of gas–the feedstock to LNG. However, this won’t happen because we have interest in both upstream and downstream (activities).

“That’s why I say there is a lot of missing gaps in the last two days’ reports but I think it is not a problem between Sarawak government and PETRONAS,” he pointed out.

When asked about media reports regarding possible legal actions by PETRONAS, Abang Johari replied: “I don’t know. That one, you have to ask PETRONAS.”

An earlier report indicated that PETRONAS is considering legal action to maintain its control over Malaysia’s oil and gas resources amid mounting pressure from Sarawak, which seeks to assume full control over the trading and management of the substantial natural wealth and resources in the region.

This follows Petros positioning itself to become the sole gas aggregator, which challenges PETRONAS’ decades-long dominance in the sector since 1974. – DayakDaily