Strict licensing rules for O&G industry in Sarawak

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Assemblyman Asajaya and Minister of Tourism, Arts, Culture, Youth and Sports, Datuk Seri Abdul Karim Rahman Hamzah together with his deputy appoints and officials of his ministry at the Legislative Assembly Conference The 19th State (DUN) of Sarawak in DUN, Petra Jaya, Kuching.

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THOSE intending to venture into the oil and gas (O&G) industry in Sarawak must first obtain a licence from Petroleum Sarawak Berhad (Petros), said Tourism, Creative Industry and Performing Arts Minister Datuk Seri Abdul Karim Rahman Hamzah.

He said there were instances where individuals had entered Sarawak on social passes to undertake short-term work, such as inspections or consultations, without proper authorisation.

This will no longer be tolerated, he stressed, adding that even registered O&G companies must secure the necessary work permits for their non-Sarawakian employees.

“There are specific requirements for involvement in the oil and gas industry in Sarawak.

“Even if you are a registered company, it is still illegal for you to operate here without the proper licensing. This applies to your employees and engineers.

“We may need to enforce stricter measures. Even those visiting to check their rigs must comply with the stringent requirements,” he said during a press conference at the Sarawak Legislative Assembly (DUN) Complex on Tuesday (Nov 19).

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Abdul Karim emphasised that Sarawak has absolute authority to prohibit any individual, entity, or company from operating within its borders if they fail to comply with the state’s laws.

For those already holding work permits, he clarified that their permits would become invalid if their employers lack the proper licences to operate in Sarawak’s oil and gas sector.

“How many foreign companies want to operate in Sarawak? There are many. In Bintulu, we have companies from Korea, Japan, and Singapore.

“Even local companies employ foreigners, such as Singaporeans and Taiwanese. However, if these companies are not licensed under Petros, they cannot legally operate here, even if they are registered under the Companies Act,” he added.

Earlier, during his ministerial winding-up speech, Abdul Karim reiterated that Sarawak holds exclusive authority over labour matters involving non-resident workers.

Citing the Sarawak Labour Ordinance (Chapter 76), he highlighted that employers are required to obtain state government approval before hiring non-resident workers.

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Non-compliance carries severe penalties, including fines and imprisonment.

“These rights, protected by the Federal Constitution, Malaysia Agreement 1963 (MA63), and the Inter-Governmental Committee (IGC) Report, are vital for Sarawak to safeguard its interests and maintain its autonomy within Malaysia.

“This reflects the Sarawak government’s firm commitment to upholding the rule of law and protecting workers’ welfare,” Abdul Karim said, adding that autonomy over immigration and labour matters is fundamental to Sarawak’s governance and identity.

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