CM: DUN never endorsed PDA 1974

Datuk Patinggi Abang Johari Tun Openg

KUCHING: The State Legislative Assembly (DUN) never endorsed the Petroleum Development Act (PDA) 1974, said Chief Minister Datuk Patinggi Abang Johari Tun Openg.

In his winding up speech yesterday, Abang Johari said the Oil Mining Ordinance of 1958 is a law that still remains in force today.

“The Oil Mining Ordinance 1958 (OMO 1958) gives Sarawak full regulatory authority over all persons and companies involved in the operations of the oil and gas industry in Sarawak,” he told the august House yesterday.

“Petronas applied to the Federal Court to seek a declaration that the Sarawak OMO 1958 was already repealed implicitly by the Petroleum Development Act (PDA). We are glad that this application to seek the declaration in the Federal Court was rejected by the Federal Court on June 22, 2018.”

Abang Johari stressed that Sarawak is proceeding with enforcing the OMO 1958 and the Gas Distribution Ordinance 2016 effective July 1, 2018 through the Sarawak Minerals and Management Authority (SMMA) through Petroleum Sarawak Bhd (Petros).

“The provisions for enforcement are tightened by the Oil Mining (Amendment) Bill 2018 passed in this august House last week on July 10, 2018,” he said.

With the Gas Distribution Ordinance, he said, the Sarawak government will work closely with the Federal Ministry of Domestic Trade and Consumer Affairs and Petronas regarding the distribution of natural gas to consumers in Sarawak.

“We hope that Petronas can understand the position that the Sarawak government is taking. We wish to assure oil and gas industry players in Sarawak that the Sarawak government is reasonable and is business friendly,” he said.

“The Sarawak government expects Petronas to be friendly and cooperative. After all, Pakatan Harapan (PH) in its GE14 manifesto promised to deliver to Sarawak a petroleum royalty of 20 per cent, up from 5 per cent. This indicates that the PH federal government favours Sarawakians in its dealings, at the very least, in regards to petroleum.”

Abang Johari noted that this issue has been simmering in the hearts of Sarawakians since 1974, when the PDA was first promulgated in Parliament.

“Our goal is to restore to Sarawak rights that are enshrined in the Malaysia Agreement of 1963 (MA63) – the international treaty between Sarawak, Sabah, Singapore and Malaya to form the Federation of Malaysia, which puts Sarawak as an equal partner with Malaya and Sabah,” he pointed out.

“Among those rights are the rights of Sarawak to our own legislations, including those that were enacted before the formation of the Federation.”

Source: https://cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2155

CM: DUN never endorsed PDA 1974

Datuk Patinggi Abang Johari Tun Openg

KUCHING: The State Legislative Assembly (DUN) never endorsed the Petroleum Development Act (PDA) 1974, said Chief Minister Datuk Patinggi Abang Johari Tun Openg.

In his winding up speech yesterday, Abang Johari said the Oil Mining Ordinance of 1958 is a law that still remains in force today.

“The Oil Mining Ordinance 1958 (OMO 1958) gives Sarawak full regulatory authority over all persons and companies involved in the operations of the oil and gas industry in Sarawak,” he told the august House yesterday.

“Petronas applied to the Federal Court to seek a declaration that the Sarawak OMO 1958 was already repealed implicitly by the Petroleum Development Act (PDA). We are glad that this application to seek the declaration in the Federal Court was rejected by the Federal Court on June 22, 2018.”

Abang Johari stressed that Sarawak is proceeding with enforcing the OMO 1958 and the Gas Distribution Ordinance 2016 effective July 1, 2018 through the Sarawak Minerals and Management Authority (SMMA) through Petroleum Sarawak Bhd (Petros).

“The provisions for enforcement are tightened by the Oil Mining (Amendment) Bill 2018 passed in this august House last week on July 10, 2018,” he said.

With the Gas Distribution Ordinance, he said, the Sarawak government will work closely with the Federal Ministry of Domestic Trade and Consumer Affairs and Petronas regarding the distribution of natural gas to consumers in Sarawak.

“We hope that Petronas can understand the position that the Sarawak government is taking. We wish to assure oil and gas industry players in Sarawak that the Sarawak government is reasonable and is business friendly,” he said.

“The Sarawak government expects Petronas to be friendly and cooperative. After all, Pakatan Harapan (PH) in its GE14 manifesto promised to deliver to Sarawak a petroleum royalty of 20 per cent, up from 5 per cent. This indicates that the PH federal government favours Sarawakians in its dealings, at the very least, in regards to petroleum.”

Abang Johari noted that this issue has been simmering in the hearts of Sarawakians since 1974, when the PDA was first promulgated in Parliament.

“Our goal is to restore to Sarawak rights that are enshrined in the Malaysia Agreement of 1963 (MA63) – the international treaty between Sarawak, Sabah, Singapore and Malaya to form the Federation of Malaysia, which puts Sarawak as an equal partner with Malaya and Sabah,” he pointed out.

“Among those rights are the rights of Sarawak to our own legislations, including those that were enacted before the formation of the Federation.”

Source: http://www.cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2155

Just what Sarawak needs

The Yang di-Pertua Negeri (front, second left) being welcomed by Chief Minister Datuk Patinggi Abang Johari Tun Openg (on TYT’s right) upon his arrival at DUN Complex in Petra Jaya. Behind them are Taib’s wife Toh Puan Datuk Patinggi Raghad Kurdi Taib (behind Abang Johari, partly obscured) and the chief minister’s wife Datin Patinggi Dato Juma’ani Tuanku Bujang (far back, at left). — Photo By Chimon Upon

KUCHING: The formation of Gabungan Parti Sarawak (GPS) by leaders in the Sarawak government is in line with the aspirations of the people of Sarawak.

In stating this, Yang di-Pertua Negeri Sarawak Tun Pehin Sri Abdul Taib Mahmud said the newly-formed coalition would provide a solid foundation for the Sarawak government to champion the rights and autonomy of Sarawak.

“I believe that GPS can become a strong and solid political coalition that can unite the people for the well-being and progress of Sarawak,” he said in his address at the opening of the 18th State Legislative Assembly (DUN) sitting at DUN Complex here yesterday.

The Head of  State also expressed his confidence that GPS would serve as an important platform to claim Sarawak’s rights from the federal government in accordance with the Malaysia Agreement 1963 (MA63) and the Federal Constitution. “I therefore urge the federal government to give their sincere cooperation to the state government to achieve this goal.”

Taib was also optimistic that the Sarawak government would be able to manage its natural resources well, particularly oil and gas, to ensure that Sarawakians could benefit from them.

“I am pleased that the efforts towards managing these resources effectively and sustainably have been implemented.

“I believe that enforcement of laws such as the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016 will ensure that Sarawak’s valuable oil and gas resources are well established for the future of the people of Sarawak.”

In this regard, he said the establishment of Petroleum Sarawak Berhad (Petros) is in line with the government’s efforts to manage the development of the oil and gas industry in Sarawak.

“This is in line with Sarawak’s aspiration to become the region’s leading oil and gas industry hub and collaborate with Petronas for the interest of the country, in particular Sarawak.

“Therefore, I call for the rights of Sarawak borders, especially the maritime borders, to be maintained and safeguarded. This is crucial so as to ensure that valuable natural resources such as oil and gas in Sarawak waters could be developed and managed for the benefit and prosperity of the state,” he emphasised.

Meanwhile, Taib took the opportunity to congratulate Tun Dr Mahathir Mohamad on the latter’s appointment as the seventh prime minister of Malaysia.

“I am confident that with his vast experience in economy, politics and social, Malaysia will continue to progress and prosper towards Vision 2020,” he said, expressing optimism that under Dr Mahathir’s leadership, the federal government would continue to implement programmes and projects in Sarawak for the well-being of the people.

He also congratulated Pakatan Harapan (PH) for winning the 14th general election and forming the new federal government.

Taib hoped that with the mandate given by the people to the PH-led federal government, the country and its citizens would continue to receive benefits in terms of development and prosperity.

Source: https://cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2138

Just what Sarawak needs

The Yang di-Pertua Negeri (front, second left) being welcomed by Chief Minister Datuk Patinggi Abang Johari Tun Openg (on TYT’s right) upon his arrival at DUN Complex in Petra Jaya. Behind them are Taib’s wife Toh Puan Datuk Patinggi Raghad Kurdi Taib (behind Abang Johari, partly obscured) and the chief minister’s wife Datin Patinggi Dato Juma’ani Tuanku Bujang (far back, at left). — Photo By Chimon Upon

KUCHING: The formation of Gabungan Parti Sarawak (GPS) by leaders in the Sarawak government is in line with the aspirations of the people of Sarawak.

In stating this, Yang di-Pertua Negeri Sarawak Tun Pehin Sri Abdul Taib Mahmud said the newly-formed coalition would provide a solid foundation for the Sarawak government to champion the rights and autonomy of Sarawak.

“I believe that GPS can become a strong and solid political coalition that can unite the people for the well-being and progress of Sarawak,” he said in his address at the opening of the 18th State Legislative Assembly (DUN) sitting at DUN Complex here yesterday.

The Head of  State also expressed his confidence that GPS would serve as an important platform to claim Sarawak’s rights from the federal government in accordance with the Malaysia Agreement 1963 (MA63) and the Federal Constitution. “I therefore urge the federal government to give their sincere cooperation to the state government to achieve this goal.”

Taib was also optimistic that the Sarawak government would be able to manage its natural resources well, particularly oil and gas, to ensure that Sarawakians could benefit from them.

“I am pleased that the efforts towards managing these resources effectively and sustainably have been implemented.

“I believe that enforcement of laws such as the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016 will ensure that Sarawak’s valuable oil and gas resources are well established for the future of the people of Sarawak.”

In this regard, he said the establishment of Petroleum Sarawak Berhad (Petros) is in line with the government’s efforts to manage the development of the oil and gas industry in Sarawak.

“This is in line with Sarawak’s aspiration to become the region’s leading oil and gas industry hub and collaborate with Petronas for the interest of the country, in particular Sarawak.

“Therefore, I call for the rights of Sarawak borders, especially the maritime borders, to be maintained and safeguarded. This is crucial so as to ensure that valuable natural resources such as oil and gas in Sarawak waters could be developed and managed for the benefit and prosperity of the state,” he emphasised.

Meanwhile, Taib took the opportunity to congratulate Tun Dr Mahathir Mohamad on the latter’s appointment as the seventh prime minister of Malaysia.

“I am confident that with his vast experience in economy, politics and social, Malaysia will continue to progress and prosper towards Vision 2020,” he said, expressing optimism that under Dr Mahathir’s leadership, the federal government would continue to implement programmes and projects in Sarawak for the well-being of the people.

He also congratulated Pakatan Harapan (PH) for winning the 14th general election and forming the new federal government.

Taib hoped that with the mandate given by the people to the PH-led federal government, the country and its citizens would continue to receive benefits in terms of development and prosperity.

Source: http://www.cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2138

Development plans put Sarawak on right track

KUCHING: Sarawak has achieved positive economic growth despite global economic uncertainty, Yang di-Pertua Negeri Tun Abdul Taib Mahmud said.

He said the state’s economy grew by 4.7% last year compared to 2.3% in 2016, while the Gross Domestic Product (GDP) per capita increased from RM44,000 in 2016 to RM46,000.

Exports also grew from RM77bil in 2016 to RM96bil last year. The poverty rate meanwhile dropped from 0.9% in 2014 to 0.6% last year and unemployment remained at less than 4%.

“Sarawak’s growth is supported by strong economic fundamentals, good administration and financial management by the state government,” Taib said when opening the Sarawak Legislative Assembly session here yesterday.

He said the state government’s development plans, such as the Socio-Economic Transformation Plan, Sarawak Corridor of Renewable Energy (SCORE) and Digital Economy Plan, would continue to boost growth and attract investment.

“These are people-centric plans that will improve socio-economic standards and create jobs, especially for the talented and highly-skilled younger generation,” he said.

In particular, he said the Digital Economy Plan could increase productivity in sectors like agriculture, manufacturing and services by promoting the use of digital technology and applications.

“The digital economy has the potential to create new opportunities for our younger generation.

“I believe our young people have the creative and innovative skills necessary for the digital era,” he said.

On another matter, Taib expressed confidence that the state government would be able to manage Sarawak’s oil and gas resources for the benefit of the people.

He said efforts towards developing and managing these resources sustainably had been put in place, including the enforcement of the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016 and the formation of Petroleum Sarawak Bhd (Petros).

“This is in line with Sarawak’s aspiration to become an oil and gas hub in the region and to collaborate with Petronas for the interest of Malaysia and the state,” he said.

As such, he said Sarawak’s rights to its territorial waters must be preserved so that the oil and gas resources found there could be developed to benefit the state.

Source: https://www.thestar.com.my/metro/metro-news/2018/07/10/development-plans-put-sarawak-on-right-track-state-economy-grew-by-47-last-year-poverty-rate-dropped/

Formation of GPS in line with S’wakians’ aspirations – Taib

Taib (fifth right) is welcomed by Chief Minister Datuk Patinggi Abang Johari Tun Openg (fifth left) and other distinguished guests during his arrival to officiate the  opening of the 18th State Legislative Assembly (DUN) Sitting held at DUN Complex today. – Photo by Chimon Upon

KUCHING: The formation of Gabungan Parti Sarawak (GPS) by leaders in the state government is in line with the aspirations of the people of Sarawak.

Yang di-Pertua Negeri Tun Pehin Sri Abdul Taib Mahmud said the newly formed coalition will provide a solid foundation for the state government in championing for the rights and autonomy of the state.

“I believe that GPS can become a strong and solid political coalition that can unite the people for the well-being and progress of Sarawak,” he said in his address during the opening of the 18th State Legislative Assembly (DUN) Sitting held at DUN Complex here today.

The Head of State also expressed his confidence that GPS will serve as an important platform to claim Sarawak’s rights from the federal government in accordance with the Malaysia Agreement 1963 (MA63) and the Federal Constitution.

“I therefore urge the federal government to give their sincere cooperation to the state government to achieve this goal.”

Taib is also optimistic that the state government will be able to manage the state’s natural resources well particularly oil and gas to ensure that the people in the state can benefit from them.

“I am pleased that the efforts towards managing these resources effectively and sustainably have been implemented.

“I believe that enforcement of laws such as the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016 will ensure that Sarawak’s valuable oil and gas resources are well established for the future of the people of Sarawak.”

On that matter, he said the establishment of Petroleum Sarawak Berhad (Petros) is in line with the state government’s efforts to manage the development of the oil and gas industry in the state.

“This is in line with Sarawak’s aspiration to become the region’s leading oil and gas industry hub and collaborate with Petronas for the interest of the country, in particular Sarawak.

“Therefore, I call on for the rights of Sarawak borders especially maritime borders to be maintained and safeguarded. This is crucial so as to ensure that valuable natural resources such as oil and gas at Sarawak waters be developed and managed for the benefit and prosperity of the state,” he emphasised.

Earlier in his speech, Taib also took the opportunity to congratulate Tun Dr Mahathir Mohamad on his appointment as the seventh prime minister of Malaysia.

“I am confident that with his vast experience in economy, politics and social, Malaysia will continue to progress and prosper towards Vision 2020,” he said and expressed optimism that under Mahathir’s leadership, the federal government will continue to implement programmes and projects in Sarawak for the well-being of the people.

He also congratulated Pakatan Harapan (PH) on winning the 14th General Election and forming a new federal government.

He hoped that with the mandate given by the people to the PH federal government, the country and citizens will continue to receive benefits in terms of development and prosperity.

Source: https://cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2135

Formation of GPS in line with S’wakians’ aspirations – Taib

Taib (fifth right) is welcomed by Chief Minister Datuk Patinggi Abang Johari Tun Openg (fifth left) and other distinguished guests during his arrival to officiate the  opening of the 18th State Legislative Assembly (DUN) Sitting held at DUN Complex today. – Photo by Chimon Upon

KUCHING: The formation of Gabungan Parti Sarawak (GPS) by leaders in the state government is in line with the aspirations of the people of Sarawak.

Yang di-Pertua Negeri Tun Pehin Sri Abdul Taib Mahmud said the newly formed coalition will provide a solid foundation for the state government in championing for the rights and autonomy of the state.

“I believe that GPS can become a strong and solid political coalition that can unite the people for the well-being and progress of Sarawak,” he said in his address during the opening of the 18th State Legislative Assembly (DUN) Sitting held at DUN Complex here today.

The Head of State also expressed his confidence that GPS will serve as an important platform to claim Sarawak’s rights from the federal government in accordance with the Malaysia Agreement 1963 (MA63) and the Federal Constitution.

“I therefore urge the federal government to give their sincere cooperation to the state government to achieve this goal.”

Taib is also optimistic that the state government will be able to manage the state’s natural resources well particularly oil and gas to ensure that the people in the state can benefit from them.

“I am pleased that the efforts towards managing these resources effectively and sustainably have been implemented.

“I believe that enforcement of laws such as the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016 will ensure that Sarawak’s valuable oil and gas resources are well established for the future of the people of Sarawak.”

On that matter, he said the establishment of Petroleum Sarawak Berhad (Petros) is in line with the state government’s efforts to manage the development of the oil and gas industry in the state.

“This is in line with Sarawak’s aspiration to become the region’s leading oil and gas industry hub and collaborate with Petronas for the interest of the country, in particular Sarawak.

“Therefore, I call on for the rights of Sarawak borders especially maritime borders to be maintained and safeguarded. This is crucial so as to ensure that valuable natural resources such as oil and gas at Sarawak waters be developed and managed for the benefit and prosperity of the state,” he emphasised.

Earlier in his speech, Taib also took the opportunity to congratulate Tun Dr Mahathir Mohamad on his appointment as the seventh prime minister of Malaysia.

“I am confident that with his vast experience in economy, politics and social, Malaysia will continue to progress and prosper towards Vision 2020,” he said and expressed optimism that under Mahathir’s leadership, the federal government will continue to implement programmes and projects in Sarawak for the well-being of the people.

He also congratulated Pakatan Harapan (PH) on winning the 14th General Election and forming a new federal government.

He hoped that with the mandate given by the people to the PH federal government, the country and citizens will continue to receive benefits in terms of development and prosperity.

Source: http://www.cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2135

Affin Hwang upgrades Petra Energy to buy as risk-reward looks favourable

KUALA LUMPUR: Affin Hwang Capital Research says the risk-reward is looking favourable for Petra Energy and upgraded its rating to buy with a higher 12-month target price of 59 sen.

Accoding to the research house, Petronas has been issuing more contract awards and work orders while Petra Energy has also seen higher work orders for hook-up, construction and commissioning (HuCC) contract to the value of RM150mil.

Meanwhile, the maintanence, construction and modifgication contract with Petronas is also picking up momentum in terms of mor work programmes amounting to RM50mil by our estimates. 

“PENB has recently completed the production enhancement programme and is in the midst of
doing some commissioning work. Based on a back-of-envelope calculation, this will increase targeted production to approximately 5,500–5,800 barrels per day (from 4,500 barrels). 

“We are also positive that the KBM risk service contract (RSC), which is due to expire by mid-2020, stands a good chance of being extended, on the current high oil price and good production track record.”

Affin Hwang also believes that Petra Energy stands a good chance of wiinning a rebid for the HuCC contract for another five years, with a total outstanding orderbook current at RM1.6bil.

With regrds to operating in Sarawak, the research house said it understands that service providers like Petra Energy are still waiting for Petros to award licences although it should not have a problem in getting the licence.

Source: https://www.thestar.com.my/business/business-news/2018/07/05/affin-hwang-upgrades-petra-energy-to-buy-as-risk-reward-looks-favourable/

Chong suggests S’wak file case on rights to O&G in High Court

Chong (second left) and Pending assemblywoman Violet Yong (left) sharing a light-hearted moment with Chief Minister Datuk Patinggi Abang Johari Tun Openg (third left), Abdul Karim (third right), Local Government and Housing Minister Datuk Dr Sim Kui Hian (right) and State Legislative Assembly Speaker Datuk Amar Mohammad Asfia Awang Nassar (second right). — Photo by Muhammad Rais Sanusi

KUCHING: State Pakatan Harapan (PH) chairman Chong Chieng Jen has suggested that the Sarawak government make the first move and file a case in the High Court if it is serious about reclaiming its rights over oil and gas in the state.

This, he said, would ensure that the sole authority over upstream oil and gas activities in Sarawak is clarified once and for all.

“I think as a responsible government, you have to take the matter to court to find out whether the Petroleum Development Act (PDA) 1974 or the Oil Mining Ordinance (OMO) by the state prevails.

“Currently, it’s causing a lot of uncertainties in the oil and gas industry and this has to be clarified,” he told reporters when met after paying Tourism, Arts, Culture, Youth and Sports Minister Datuk Abdul Karim Rahman Hamzah a Raya visit at his Hari Raya open house held at Penview Convention Centre here yesterday.

He was commenting on the Federal Court’s dismissal of Petroliam Nasional Berhad’s (Petronas) application to commence proceedings to determine that the national oil company is the sole authority of all upstream oil and gas activities in the country, including Sarawak.

Chief Judge of the High Court of Malaya Tan Sri Ahmad Maarop had on Friday rejected Petronas’ application of leave to commence proceeding on the matter in the Federal Court.

Chong, who is also Sarawak DAP chairman, said the Federal Court’s decision did not clarify on whether the state government or Petronas has authority over oil and gas in the state.

“It’s neither a victory nor loss for either party at the moment and Petronas was asked to pay RM50,000 to the state government because it has filed in the wrong court.

“But it did not clarify the position of the law and now with this uncertainty on whether PDA or the state has the power, I think it has to be sorted out,” he opined.

The Stampin MP reiterated that if the state government is serious, it should file the case at the High Court as once this issue has been determined in the court of law, there would not be any conflict.

“If at the end of the day, the court says you (state government) have no claim, the state can still fall back on the 20 per cent oil royalty we (PH) have offered.

“In the oil and gas industry, a 20 per cent oil royalty is almost the maximum you can earn from extraction and sale of oil because you have the cost, research and development, and oil exploration cost to take into consideration,” he remarked.

He added that there was no point for the Sarawak government to state that it has the right to its  upstream oil and gas activities outside of court.

“It doesn’t serve any purpose and will only add to confusion and uncertainty to the industry,” he said while pointing out that this will also cause Sarawakians to suffer as employment and business opportunities will be affected.

Last month, Petronas filed an application to seek a declaration from the Federal Court on matters pertaining to the PDA and its position on the regulatory controls of upstream activities in Sarawak.

The national oil and gas company is seeking a declaration that the PDA was duly enacted by the Parliament and stated that Petronas is the exclusive regulatory authority for the upstream industry throughout the country.

Petronas is also seeking a declaration that the OMO was repealed by the PDA and hence Sarawak’s own oil and gas company, Petroleum Sarawak Berhad (Petros), which will serve as the regulator of oil and gas activities in Sarawak based on OMO, is not valid.

Source: https://cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2115

Chong suggests S’wak file case on rights to O&G in High Court

Chong (second left) and Pending assemblywoman Violet Yong (left) sharing a light-hearted moment with Chief Minister Datuk Patinggi Abang Johari Tun Openg (third left), Abdul Karim (third right), Local Government and Housing Minister Datuk Dr Sim Kui Hian (right) and State Legislative Assembly Speaker Datuk Amar Mohammad Asfia Awang Nassar (second right). — Photo by Muhammad Rais Sanusi

KUCHING: State Pakatan Harapan (PH) chairman Chong Chieng Jen has suggested that the Sarawak government make the first move and file a case in the High Court if it is serious about reclaiming its rights over oil and gas in the state.

This, he said, would ensure that the sole authority over upstream oil and gas activities in Sarawak is clarified once and for all.

“I think as a responsible government, you have to take the matter to court to find out whether the Petroleum Development Act (PDA) 1974 or the Oil Mining Ordinance (OMO) by the state prevails.

“Currently, it’s causing a lot of uncertainties in the oil and gas industry and this has to be clarified,” he told reporters when met after paying Tourism, Arts, Culture, Youth and Sports Minister Datuk Abdul Karim Rahman Hamzah a Raya visit at his Hari Raya open house held at Penview Convention Centre here yesterday.

He was commenting on the Federal Court’s dismissal of Petroliam Nasional Berhad’s (Petronas) application to commence proceedings to determine that the national oil company is the sole authority of all upstream oil and gas activities in the country, including Sarawak.

Chief Judge of the High Court of Malaya Tan Sri Ahmad Maarop had on Friday rejected Petronas’ application of leave to commence proceeding on the matter in the Federal Court.

Chong, who is also Sarawak DAP chairman, said the Federal Court’s decision did not clarify on whether the state government or Petronas has authority over oil and gas in the state.

“It’s neither a victory nor loss for either party at the moment and Petronas was asked to pay RM50,000 to the state government because it has filed in the wrong court.

“But it did not clarify the position of the law and now with this uncertainty on whether PDA or the state has the power, I think it has to be sorted out,” he opined.

The Stampin MP reiterated that if the state government is serious, it should file the case at the High Court as once this issue has been determined in the court of law, there would not be any conflict.

“If at the end of the day, the court says you (state government) have no claim, the state can still fall back on the 20 per cent oil royalty we (PH) have offered.

“In the oil and gas industry, a 20 per cent oil royalty is almost the maximum you can earn from extraction and sale of oil because you have the cost, research and development, and oil exploration cost to take into consideration,” he remarked.

He added that there was no point for the Sarawak government to state that it has the right to its  upstream oil and gas activities outside of court.

“It doesn’t serve any purpose and will only add to confusion and uncertainty to the industry,” he said while pointing out that this will also cause Sarawakians to suffer as employment and business opportunities will be affected.

Last month, Petronas filed an application to seek a declaration from the Federal Court on matters pertaining to the PDA and its position on the regulatory controls of upstream activities in Sarawak.

The national oil and gas company is seeking a declaration that the PDA was duly enacted by the Parliament and stated that Petronas is the exclusive regulatory authority for the upstream industry throughout the country.

Petronas is also seeking a declaration that the OMO was repealed by the PDA and hence Sarawak’s own oil and gas company, Petroleum Sarawak Berhad (Petros), which will serve as the regulator of oil and gas activities in Sarawak based on OMO, is not valid.

Source: http://www.cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&nid=2115

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