CM ‘lying’ about oil ownership, says Sarawak DAP Youth

A Sarawak DAP Youth leader has shot down claims by Chief Minister Abang Johari Abang Openg that the state will regain full ownership and control of its oil and gas resources.

In a statement, Sarawak DAP Youth publicity secretary Abdul Aziz Isa said this follows Petronas seeking a declaration that it is the exclusive owner of petroleum resources and industry regulator throughout Malaysia – including Sarawak.

“Without a shadow of a doubt, this (legal application) proves that the chief minister had blatantly lied to Sarawakians when he claimed that Sarawak will regain rights to fully exploit oil and gas resources and other resources constitutionally under the State List as per the Ninth Schedule of the Federal Constitution,” he said.

Petronas in its application to the Federal Court is also seeking a declaration that the Petroleum Development Act (PDA) 1974 is the de facto law governing the industry.

“He (Abang Johari) didn't just lie once but twice.

“The second lie was when he claimed that the then-prime minister Najib Abdul Razak had agreed to return the state's power over its natural resources including oil and gas that had been inadvertently eroded over the years.”

Aziz said that Sarawak BN should have instead pushed for amendments to Section 2(1) and Section 6(1) of PDA – which would have restored the state’s rights to its resources – while BN still held federal power.

“By virtue of the provisions of the PDA 1974, the ultimate ownership and control of the oil and gas industry in Sarawak remains with Petronas, and the prime minister (since Petronas was put under the Prime Minister's Department)."

Regulate, but not own

Aziz also pointed out that Sarawak’s Oil Mining Ordinance 1958 vests the state with full autonomy over its oil and gas resources, yet it has only been granted regulatory powers by the federal government to date.

“We are not talking about regulatory authority, but ‘ownership’ of all our oil and gas resources. We may have regulatory authority to manage our oil and gas resources, but do we own them?

“If Sarawak already had full ownership of its oil and gas resources, Sarawak need not pay the five percent royalty.

“In my humble opinion, Abang Johari is avoiding the real issue which is the ‘ownership’ of oil and gas found in Sarawak,” he said.

Petronas' decision to seek the declaration comes just a month before the Sarawak government is scheduled to assume full regulatory authority over the upstream and downstream aspects of the industry through Petroleum Sarawak Bhd (Petros).

Abang Johari had launched Petros prior to the May 9 elections.

At the time, he claimed Najib had agreed to return oil rights to the state. - Mkini