Comply with our laws, Julaihi tells Petronas

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MEDIA CONFERENCE... Sebuyau assemblyman, Datuk Seri Julaihi Narawi also seen his deputy Pantai Damai assemblyman, Datuk Abdul Rahman Junaidi at the 19th Sarawak State Legislative Assembly (DUN) Conference in DUN, Petra Jaya, Kuching.

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COMPLIANCE with legal frameworks under the Distribution of Gas Ordinance 2016 is not optional, but a statutory duty that must be honoured by all parties.

Minister of Utility and Telecommunication Datuk Seri Julaihi Narawi said regrettably, Petroliam Nasional Berhad (Petronas) does not seem to respect and abide by state laws such as the Distribution of Gas Ordinance 2016 or to cooperate with Petroleum Sarawak Berhad (Petros) to enable it to carry out its statutory functions in the interests of Sarawakians.

“I noted a call by a former Minister of Law, Datuk Zaid Ibrahim for cool heads to resolve the oil and gas issues involving Petronas. The Sarawak government has always called for collaboration between Petros and Petronas.

“Those with cool heads will realise that since the coming into force of the Petroleum Development Act (PDA), 1974, the cumulative value of petroleum produced and obtained in Sarawak, by Petronas and the federal government up to 2014 is RM1,000 billion or RM1 trillion, with only 5 per cent or RM50 billion thereof returned to Sarawak in the form of cash payment pursuant to section 4 of the PDA.

“With such enormous contribution to the national coffers, Sarawak deserves better attention, treatment and support from Petronas.

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“The least Petronas should do is to comply with our laws when operating in Sarawak and allocate and make available more gas to support the industrial development of Sarawak and its transition towards a green economy,” he said in his ministerial winding-up speech on Monday (Nov 18).

Julaihi said Sarawak’s journey to reclaim its rightful autonomy over its resources is both a matter of principle and necessity.

“It is a testament to our responsibility to secure a prosperous and sustainable future of Sarawak for generations to come,” he said.

Earlier, he said that Petros’ appointment as the sole gas aggregator effective Feb 1, 2024 in the state is final and non-negotiable.

“For the latest developments, Petros and Petronas are in discussions, particularly on technical aspects,” he said.

In this regard, he reminded any parties involved in gas distribution activities to apply for a licence under Section 7 of the Gas Distribution Ordinance, 2016 (DGO 2016).

“To date, the Ministry has issued Retail of Gas licences to 13 upstream gas players and 10 licences to downstream gas players.

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“Failure to comply with this licensing requirement constitutes an offence under Section 20 of the Ordinance, which carries penalties of fines, imprisonment, or both,” he said.

Julaihi noted that Sarawak contributes 60 per cent of Malaysia’s natural gas resources, but 94 per cent of the natural gas produced in the state is exported, leaving little benefit for local industrial development in Sarawak.

“Therefore, it is time for us to utilise our natural gas resources to advance industries in Sarawak,” he said.

He questioned why there should be issues with efforts to develop Sarawak, as its development contributes to Malaysia’s overall growth and prosperity.

“This is not merely about Sarawak’s interests but also about strengthening and enhancing the economic sectors nationwide,” he said.

Hence, Julaihi urged Malaysian leaders to broaden their perspectives on national development, rather than being confined to a development perspective focused solely on Putrajaya and Kuala Lumpur, and avoid being overly centralist.

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“Sarawak’s continued efforts to uphold its absolute rights over the state’s natural gas resources should be respected and not challenged by any parties, including Petronas or biased intellectuals.

“These rights, based on Sarawak’s laws still in force today, are crucial to ensuring our aspiration to fully control natural gas resources for the well-being of Sarawakians in particular, and Malaysians in general,” said Julaihi.

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