Stampin MP proposes 30 pct PETRONAS equity for Sarawak amid ongoing O&G dispute

Chong Chieng Jen

By DayakDaily Team

KUCHING, Jan 29: Stampin MP Chong Chieng Jen today called for a fairer arrangement for Sarawak in its ongoing dispute with Petroliam Nasional Berhad (PETRONAS), proposing that the State be granted 30 per cent equity and board representation to ensure shared benefits from the nation’s oil and gas (O&G) resources.

Chong noted that despite announcements by the Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg of a settlement between Petroleum Sarawak Berhad (PETROS) and PETRONAS, both companies continue to battle each other in court.

“Taking this dispute to court is not a good way to resolve the issue because, in a court process, it becomes winner takes all and loser loses all. Either way, it is not good for the country.

“My proposal as a solution is for Sarawak to be given a 30 per cent stake in PETRONAS, and for 30 per cent of the PETRONAS Board of Directors to be made up of Sarawakians,” he said during the debate on the motion of thanks for the Royal Address in Parliament.

Chong further said under this model, Sarawak would receive 30 per cent of all future dividends while PETRONAS retains its role as the country’s main regulator.

“With a 30 per cent equity stake, Sarawak would be entitled to 30 per cent of all future dividends paid by PETRONAS, while PETRONAS would remain the country’s main regulator.

“Whatever successes PETRONAS achieves, Sarawak would also own 30 per cent. Let us progress and prosper together,” he added.

The dispute over Sarawak’s oil and gas stems from the State’s claim that Malaysia Agreement 1963 (MA63) and its own historical laws, including the Oil Mining Ordinance (OMO) 1958, give it rights over onshore and offshore resources, while PETRONAS operates under federal law via the Petroleum Development Act (PDA) 1974.

Sarawak has pushed for greater control and revenue-sharing through its State company PETROS, with legal proceedings ongoing to clarify jurisdiction and reconcile overlapping authorities. – DayakDaily