KUCHING: Reports that Petroliam Nasional Bhd (PETRONAS) is considering legal action against Sarawak to challenge its authority over its natural resources have raised concerns among leaders in Sarawak.
Parti Pesaka Bumiputera Bersatu (PBB) information chief Datuk Idris Buang warned that if the national oil company decided to pursue the issue, it could negatively impact Malaysia both economically and politically in the short and long term, potentially straining federal-state relations or even leading to political tensions.
“I have to raise this warning flag because we cannot afford to disrupt the current positive ties between Sarawak and the Madani governments under Prime Minister Datuk Seri Anwar Ibrahim, which we consider as the best ever relation since the formation of Malaysia.
“We truly appreciate and should safeguard this good relationship for as long as we call ourselves Malaysians striving for progress.
“Anwar has made it clear that this is the time for action, not just talk, in implementing what has been agreed in the Malaysia Agreement 1963 (MA63).
“Therefore, the parties concerned should just adhere to that by working seriously on fulfilling the terms of MA63 and Sarawak Constitution,” he said.
He was reacting to a report that PETRONAS might seek a court injunction to defend its monopoly over the country’s natural resources amidst escalating demands from Sarawak for increased control over oil and gas extraction and trading.
Idris, who is the Sarawak State Legislative Assembly (DUN) Deputy Speaker, stressed that Sarawak’s sovereign rights to its oil and gas, land, forest and other natural resources, have been specifically enshrined and safeguarded under MA63.
“Our Federal Constitution is ruled by the spirit of MA63, without which Malaysia would never have been formed.
“Invariably, we must all give meaning to it. MA63 preserves Sarawak’s unique position with regard to its autonomy in many areas.
“Thus, for PETRONAS to debunk all that had been stipulated in MA63 would not be so easy without a full and rigorous defence and counteraction from Sarawak side,” he said, while adding that a court action may extensively escalate to years of legal battles with many related issues surfacing.
One key issue, he said, is on the validity of PETRONAS’ right and power under Petroleum Development Act 1974 (PDA 74), which could be called into question.
“Over the years, many legal experts have raised concerns about the weaknesses of PDA 74, particularly on how it was passed without the constitutional approval of the Sarawak and Sabah State Legislative Assemblies.
“There are strong experts’ opinions asserting that, despite the PDA 74 , Sarawak’s sovereign rights to its natural resources remain with Sarawak and all the laws relating to them that have been existing since before formation of Malaysia remain in force, including the Land Code, Oil Mining Ordinance (OMOM) 1958, and the Forest Ordinance,” he said.
He said the Queen in Council Order of 1954, registered in the United Nations (UN) stipulates the boundaries of the colony of which include the area of the continental shelf, seabeds and subsoil.
“Sarawak’s rights to all its natural resources over land extend to its territorial seas including its seabeds and subsoil by the Geneva Convention of 1958 and United Nations Convention on the Law of the Sea (UNCLOS) 1982, which extends to up to 200 nautical miles,” he said.
The federal government, he said, is responsible to subscribe to such treaties on behalf of the whole of Malaysia vis-a-vis other nations to regulate and manage its international boundaries.
“But when it comes to rights over the natural resources in the continental shelf including its seabeds and subsoils as mentioned earlier, as situated within such boundaries of the members of its federation like Sabah and Sarawak, domestic laws shall prevail,” he said.
He said there is no need for anyone to cause political stirs or even upheavals to disrupt Malaysia as a harmonious and prosperous nation.
“Therefore PETRONAS, being a responsible national corporation, must look holistically and beyond just mere its business but the sanctity to help maintain Malaysia’s stability in every aspect including the socio-political.
“I trust that Sarawak, being a faithful and loyal member of the federation, would do its best to do the same.
“The best option for both parties is to explore and gain from mutual cooperation in all areas of common interest while respecting the laws of Sarawak as safeguarded by MA63,” said Idris.
