Premier: Sarawak-Petronas gas distribution talks near conclusion

KOTA SAMARAHAN (Sept 25): Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg is confident that the discussions with Petronas regarding gas distribution in Sarawak can be concluded in October as planned.

“If it can be settled in October, then it will be in October. If there are ‘barang dikit dikit ya’ (matters along the way), we can extend with Petronas.

“But our target is October, we leave this to the those in the technical (side),” he told reporters at a press conference after launching of Sarawak Farmers Organisation (PPNS) new headquarters here today.

He also dismissed the possibility of any further delays in reaching a deal with Petronas.

“I think it can be settled. ‘Sik lama gik’ (It will be soon), in one or two months’ time. Just like Affin Bank. The Affin Bank matter has been settled,” he said referring to how the Sarawak government managed to finalise the acquisition of a majority stake in Affin Bank.

On Tuesday (Sept 24), the national oil company confirmed that it was not contemplating legal action against the Sarawak government and Petroleum Sarawak Berhad (Petros).

This was mentioned in a joint statement issued through the Premier’s Office, following a meeting between the Sarawak government, Petronas, and Petros in Kuch­ing.

According to the statement, the Sarawak government, Petronas, and Petros confirmed that discussions regarding gas distribution in Sarawak were ongoing and would be concluded soon.

It added all parties respected and abided by Federal and State laws regarding this matter.

On Sept 7, Channel News Asia (CNA) quoted government officials as saying Petronas was considering filing a court injunction to maintain itself as the sole guardian of Malaysia’s oil and gas resources.

The Singaporean news channel said the move was mooted due to Sarawak’s move for greater control of the trading and extraction of gas and other oil-related products in the state.

Abang Johari had on July 28 said discussions between Petros and Petronas on the supervision of oil and gas trading in Sarawak must be finalised by Oct 1,

This was after Petronas was given a three-month extension from Jul to discuss on the matter with their present liquefied natural gas (LNG) purchasers.

Petros had been tasked with procuring natural gas since its appointment as sole gas aggregator effective Feb 1 this year under the Distribution of Gas Ordinance (DGO) 2016.