KUCHING: Puncak Borneo MP Willie Mongin has called on Malaysians to recognise and respect the Sarawak Oil Mining Ordinance 1958 (OMO1958), a pre-Malaysia law that remains valid and holds equal standing with federal law under the Malaysia Act 1963 (MA63).
Willie urged Prime Minister Datuk Seri Anwar Ibrahim to use his authority under the Petroleum Development Act (PDA) to rectify long-standing injustices in Sarawak’s oil and gas industry.
“Prime Minister Datuk Seri Anwar Ibrahim, I appeal to you — under the Petroleum Development Act (PDA), you have absolute power over the control and direction of PETRONAS. Please use this power to right this wrong, uphold justice, and advocate for fairness.
“Now is the time. We know that you are sincere and capable of doing this for us, for the betterment of our country for our shared prosperity,” he said during the debate on the Motion of Royal Address at Dewan Negara today (Feb 13).
Willie acknowledged Anwar’s recognition of PETROS as Sarawak’s sole gas aggregator but questioned conflicting statements by the Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said, who stated that PETROS’ role excludes liquefied natural gas (LNG) without additional licensing requirements.
“Therefore, I seek clarification, as the response from the Minister of Law appears to contradict the statements made by the Tambun MP and Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, compared to the response given by the Stampin MP Chong Chieng Jen.
“Does PETRONAS operate without requiring a license solely under a Licensing Exemption, while still subject to the Distribution of Gas Ordinance (DGO)? What agreements were reached in the negotiations concerning Liquefied Natural Gas (LNG)? Do Federal and State Laws coexist?” he added.
He emphasised that the Inter-Governmental Committee (IGC) Report and Article VIII of the Malaysia Agreement 1963 (MA63) granted Sarawak legislative power over gas distribution, leading to the enactment of the Gas Distribution Ordinance 2016 (DGO), amended in 2023 to solidify PETROS’ role.
Sarawak, he said, never agreed to limit PETROS to non-LNG activities and maintains that PETRONAS must comply with state laws, as reaffirmed in the High Court ruling on state sales tax in 2019.
“PETRONAS is not exempt under the Petroleum Development Act (PDA) from complying with other written laws, including State laws. In the case of PETRONAS vs. The State Sales Tax Controller & The Sarawak Government, the High Court ruled that PETRONAS is not exempted by the PDA from compliance with other laws, including State laws.
“This is why PETRONAS was required to pay the State Sales Tax under the State Sales Tax Ordinance and has been paying it since 2019. Therefore, PETRONAS must comply with the DGO to distribute and supply gas in Sarawak,” he added.
He argued that the state’s natural gas should be better allocated for domestic use to drive economic growth and job creation rather than having 94 per cent exported while Peninsular Malaysia retains all of its production for local use.
“Currently, of the approximately 4.5 billion standard cubic feet per day of natural gas produced in Sarawak, 94 per cent is exported by PETRONAS to foreign countries, while only 6 per cent is allocated for domestic use in the energy, industrial, commercial, and residential sectors.
“Meanwhile, in Peninsular Malaysia, 2 billion standard cubic feet per day of natural gas production is 100 per cent utilized domestically across various sectors, including energy.
“Is this fair to Sarawak? Why should 94 per cent of our natural gas be exported when PETROS, as the sole aggregator, could manage a portion of it to increase domestic usage, boost downstream industries, generate Sarawak’s economy, create employment opportunities, and contribute tax revenue to the nation?” he said.
Willie also highlighted that PDA 1974, enacted under the Emergency Ordinance 1969, lost its enforceability in Sarawak when the ordinance was repealed in 2011.
He questioned the federal government’s legal basis for overriding Sarawak’s constitutional authority over gas distribution and urged a fair resolution to prevent national disunity.
“Although Sarawak owns its oil and gas rights, the Honourable Premier of Sarawak and the people of Sarawak remain magnanimous. We wish to share these resources with the nation, and all we ask for is our rightful share.
“Therefore, I urge the government to be fair to Sarawak. Otherwise, I fear that growing resentment and dissatisfaction will fuel national disunity. We, the people of Sarawak, seek a fair solution — a win-win outcome for our collective prosperity,” he said.
