KUCHING: The Sarawak Oil Mining Ordinance (OMO) 1958, which gives the State full regulatory authority over all persons and companies involved in the operations of the oil and gas industry in Sarawak remained to be in force.
According to the Chief Minister, Datuk Patinggi (Dr) Abang Johari Tun Openg, petroleum has been an issue of great economic and emotional appeal to Sarawakians which is the rights to State resources and legislation including petroleum.
He added that issue has been simmering in the hearts of Sarawakians since 1974 when the Petroleum Development Act (PDA) was first promulgated in parliament.
“For the record, this august House has never endorsed PDA 1974 and our goal is to restore our rights as enshrined in the Malaysia Agreement 1963, which is 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,” said Abang Johari during his winding up speech at the august House here yesterday.
He added that Petronas’ application to the Federal court to seek a declaration on Sarawak Oil Mining Ordinance 1958 was already repealed implicitly by PDA 1974.
“We are glad that this application to seek declaration in the Federal court was rejected on June 22, 2018,” he said.
Abang Johari also noted that the State will continue to enforce the Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016 effective July 1, 2018 through the Sarawak Minerals and Management Authority (SMMA) of Petroleum Sarawak Bhd (Petros).
He added that with the Gas Distribution Ordinance, the State government will work closely with the Federal Ministry of Domestic Trade, Co-operatives and Consumerism as well as Petronas regarding the distribution of natural gas to consumers in Sarawak.
“We hope that Petronas can understand the position that the State government is taking.
“We wish to assure oil and gas industry players in Sarawak that the State government is being reasonable and business-friendly, and expects Petronas to be friendly and cooperative as well,” he said adding that Pakatan Harapan’s 14th General Election manifesto promised to deliver Sarawak a petroleum royalty of 20 per cent, up from five per cent.
