The ball is now in the prime minister’s court.
That is how one would interpret the statement by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg on the gas distribution issue.
Speaking during a post-budget interview with TVS, he said the matter had been resolved, pending an announcement by the prime minister.
“This issue is not a real problem; it is merely a legal matter where PETRONAS relies on the Petroleum Development Act 1974 (PDA), while we (Sarawak) depend on the Oil Mining Ordinance (OMO) 1958.
“It has been decided that the PDA and OMO can coexist,” he said, adding that a solution was “already apparent”.
This is a positive development in terms of the gas distribution dispute between Sarawak and the national oil and gas company.
Putrajaya must understand the importance of ensuring Sarawak’s demands are met as it relates closely to political stability and the longevity of the federal administration.
Anwar, on Thursday, said discussions on gas distribution in Sarawak between PETRONAS and PETROS had been settled, and the government was currently fine-tuning the details, parameters and implications of the move.
He said he had a good discussion with Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg regarding the matter and a clear decision had been reached.
But the actual formula to resolve gas distribution has yet to be announced by the prime minister. This is the meat of the matter.
Certainly, in circumstances like these, it’s crucial for calm and rational thinking to guide actions. However, from the perspective of Sarawakians, there is an expectation for the issue to be tackled with a sense of urgency.
But now, there is and we will continue to wait for its resolution. Realistically, a win-win solution is the objective for both the national and state-owned oil and gas companies.
Contrary to the views of pundits and mouthpieces, this is not a “winner takes all” situation where the fear is that Sarawak milks the country dry.
Abang Johari during his interview acknowledged this, saying that many had tried to turn it into a major issue, with some claiming PETRONAS would lose RM100 billion in profit.
“Perhaps there might be a slight reduction (to PETRONAS’ revenues) due to the distribution of gas. (But) I believe this matter can be resolved,” he said.
The matter of OMO and PDA has been discussed and deliberated in length.
There was a precedent where PETRONAS recognised OMO during an earlier dispute for the payment of State Sales Tax (SST) in 2020, which it paid.
Possibly the worry in the current gas distribution issue is not about the veracity of Sarawak’s claims, but rather the impact of the concession made by the federal government to Sarawak.
Mind you, this happened
before. When Sarawak won its court battle to impose SST, Sabah followed suit and imposed its own SST.
The political quandary takes shape when considering other oil-producing states such as Kelantan and Terengganu — both are opposition-controlled.
The federal government and the state governments of Kelantan and Terengganu are currently in a dispute over oil royalty payments.
The view of the federal government is that the Territorial Sea Act (TSA) 2012 applies
whereby royalty payments are only made on petroleum extracted within three nautical miles from the coastline.
Sarawak is of the view that TSA is inconsequential to the state, insisting that the state’s rights to its continental shelf remain within 200 miles of its coast.
Regardless, from a federal government standpoint, it has a lot to lose as Sarawak stands to gain its demands.
But then again, we must address the issue of equitable resource sharing and distribution. The disenchantment by Sarawak is deeply rooted in the lopsided development that it had to suffer through.
This was not what was promised during the formation of Malaysia when Sarawak and Sabah leaders were brought to see the development in Malaya, and were led to believe they could have the same thing.
Perhaps those in Malaya believe that Sarawak and Sabah have always had an easier time, but this is far from the reality.
Let’s hope this government puts its money where its mouth is. Let’s hope that this formula will present itself soon and is agreeable to Sarawak.
Let’s hope that Sarawak’s rights will continue to be respected and not be trampled upon.
The aspiration of the people in Sarawak must be fulfilled. This is one step closer to achieving that perennial goal.
The views expressed here are those of the writer and do not necessarily represent the views of the Sarawak Tribune.
