19 January, 2025
Re: The Tussle of Oil and Gas between Sarawak GPS government and PETRONAS
Nowhere was there any agreement by Sarawak before Malaysia was created, that Sarawak had agreed that the federal government could take over the control and ownership of Sarawak’s oil and gas resources. It was in 1974 with the passing of the Petroleum Development Act 1974 (PDA74) that Sarawak lost this right.
Sarawak has the right to take her oil and gas back because this had been “robbed” by the federal government from Sarawak and had these resources vested in PETRONAS by passing the PDA74. It is not morally and politically right for the federal government or the government of Malaya, to continue to control and exploit these resources through PETRONAS. I say government of Malaya because United Nations Record showed Malaya changed her name to Malaysia after Singapore, Sabah and Sarawak were acquired as her territories by Malaysia Agreement 1963 on 16 September, 1963.
It has been estimated some years ago that Sarawak lost roughly RM110 billion annually of her crude oil pumped by PETRONAS from sixty oil wells off the shores of Sarawak after the passing of PDA74. It was disclosed by a past CEO of PETRONAS that Sarawak was producing at least 850,000 barrels of crude oil daily pumped by PETRONAS.
Source: By Bernama - August 18, 2017 @ 9:58pm (BUSINESS TIMES) KUCHING: Petroliam Nasional Bhd (Petronas) currently has 60 oil and gas- (O&G) producing fields in Sarawak producing an average of 850,000 barrels of oil equivalent per day, said its President/Group Chief Executive Officer, Datuk Wan Zulkiflee Wan Ariffin.
What Sarawak used to get back annually was always less than RM5 billion as development fund.
The Sarawak GPS government should take steps to reclaim these oil and gas resources back by seeking the federal parliament to repeal the Petroleum Development Act 1974(PDA74) and other relevant Acts. At the same time, PDA74 should be declared in Dewan Undangan Negri as not applicable to Sarawak as we did not consent the passing of PDA74 to take away our rights. This is to let people know the stand of the Sarawak government concerning these resources.
I am of the opinion that the taking of our oil and gas resources is illegal, wrong or unconstitutional because Article 13 of the federal constitution mentions that there could not be any acquisition of property without adequate compensation. In legal term, the meaning of “person” in Article 13 includes any legal entity who could act and who are capable of possessing legal rights and liabilities and this could mean to include Sarawak and/or Sarawak government.
So far, no record could be traced to prove that Sarawak had been compensated by the federal government for the loss of these resources.
Therefore, from what the public could adduce at the moment concerning the recent tussle concerning the oil and gas resources in Sarawak, between Sarawak GPS government and PETRONAS is that, with Sarawak government agreeing not to interfere with Petronas’ role under the Petroleum Development Act 1974, the Sarawak GPS government is considered by Sarawakians to have effectively surrendered Sarawak’s lawful right to the control and possession of Sarawak’s oil and gas resources to the federal government.
Please see Benar News dated 16 January, 2025
Prime Minister Dato Anwar Ibrahim disclosed, “Petronas will retain its national authority over oil and gas even as Petros takes control of gas distribution in Sarawak.” This means, the ownership of oil and gas still rests with the federal government but vested in the hands of PETRONAS, while Sarawak is to take the role as a “delivery boy” or as distributor of oil and gas in Sarawak only.
By agreeing not to interfere or to let Petronas to continue its operations under the Petroleum Development Act 1974, the state government is viewed by public to have compromised Sarawak’s sovereignty and the economic potential of its resources.
This clearly shows that Sarawak had lost her battle in the control, return and/or acquisition of her own oil and gas resources, which rightly belonged to Sarawak. The federal government and Petronas continue to profit significantly from Sarawak’s oil and gas reserves, while the people of Sarawak see limited returns and benefits. This arrangement perpetuates an imbalance of power and wealth, where Malaya benefits at Sarawak’s expense.
VOON LEE SHAN
President, Parti Bumi Kenyalang.