PETRONAS TO CONTINUE ITS FUNCTION, ACTIVITIES IN LINE WITH PETROLEUM DEVELOPMENT ACT 1974

PUTRAJAYA, May 21 (Bernama) -- Petroliam Nasional Bhd (Petronas) will continue to fulfil its function, activities, responsibilities and obligations as mandated under the Petroleum Development Act 1974 (PDA 1974) and related regulations.

This was among the key points of the Joint Declaration signed by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg at Perdana Putra today.

In a statement, the Prime Minister’s Office (PMO) said fundamental principles have been agreed upon to facilitate further negotiations between Petronas and Petroleum Sarawak Bhd (Petros).

The Joint Declaration acknowledges both Federal and State laws, the status of existing agreements, and the establishment of a cooperative framework between Petronas and Petros.

“All Federal and Sarawak State laws related to gas distribution in Sarawak must coexist and be respected by all parties conducting such activities in the state, including Petronas and Petros,” the statement said.

According to the Joint Declaration, the Sarawak state government has appointed Petros as the gas aggregator effective March 1, 2025.

“This appointment made pursuant to the executive authority of the State shall be respected by all parties undertaking the business of marketing, distribution and supply of gas to consumers in Sarawak.

“Any agreements and arrangements between Petronas and/or its subsidiaries with third parties for the purpose of liquified natural gas (LNG) sales from upstream operations through to LNG exports to foreign parties shall remain unaffected,” it said.

Additionally, both Petronas and Petros shall enter into discussions for the purpose of expanding business cooperation for Sarawak's gas needs in several areas.

This includes collaboration on the gas supply pipeline projects of up to 1.2 billion standard cubic feet per day (Bscf/d) to support the Sarawak Gas Roadmap.

The collaboration also encompasses other green energy, hydrogen and power generation projects which may be implemented by both Petronas and Petros, in line with Sarawak’s aspirations to be the energy hub in the ASEAN region.

“All discussions on collaborations must be subject to technical and commercial viability, and Petronas shall cooperate with Petros on future projects in Sarawak involving international partners,” it said.

The PMO emphasised that both Petronas and Petros must work together to further develop the cooperation framework in accordance with the national interest, guided by transparent, commercially-sound principles.

“The substantial potential that can be fully realised through this agreement could strengthen trust and restore investor confidence, particularly among international petroleum companies, in finalising their investment direction in Malaysia,” the PMO said.

-- BERNAMA