KUCHING: Sarawak’s oil and gas sector is poised for record growth. However, jurisdictional clarity between the state-owned Petroleum Sarawak Berhad (Petros) and the national oil company Petronas remains a critical area that requires attention.
Speaking at a press conference on Friday, Tourism, Creative Industry, and Performing Arts Minister Datuk Seri Abdul Karim Rahman Hamzah underscored the importance of collaboration between the two entities.
He noted that while the Petroleum Development Act (PDA) 1974 remains a federal law, Sarawak’s rights over its resources are rooted in state laws and should be respected.
“The PDA is an Act of Parliament, so it applies nationwide. However, Sarawak has laws governing its resources. The key now is to ensure smooth cooperation between Petros and Petronas, avoiding unnecessary tension or overlaps,” he said.
Karim pointed out that historical contracts and agreements with Petronas must be acknowledged while Petros asserts its role in managing Sarawak’s oil and gas resources.
“For years, Petronas has been operating here. They have offices and contracts that have been recognized. It is not about disregarding these agreements but finding a balanced way forward that benefits both the state and the nation,” he explained.
He added that jurisdictional issues should not escalate to legal disputes. If such matters are tested in court, the outcomes may not serve the best interests of anyone involved. Instead, it is better to focus on fine-tuning operations and creating a win-win situation for all stakeholders.
He pointed out that Sarawak’s strong financial situation is mainly due to the oil and gas industry. In 2024, the state planned to spend RM12 billion, but by the end of the year, it had more than expected at over RM13 billion. For 2025, the budget has been raised to RM15.8 billion, hoping to reach RM20 billion by the year’s end because of high oil and gas prices.
“This level of revenue growth is unprecedented for Sarawak. We are now in a position to contribute significantly to national development while also investing in critical state projects such as schools, healthcare facilities, and even a cancer hospital,” he added.
“We must always look at the bigger picture. While we focus on our state’s development, we also need to ensure that Malaysia benefits from Sarawak’s prosperity,” he said.
