Sarawak-Petronas CSA done deal

Head of State Tun Pehin Sri Abdul Taib Mahmud (second left) waves the Jalur Gemilang during the state-level Malaysia Day celebration. At left is Chief Minister Datuk Patinggi Abang Johari Tun Openg and at right is Taib’s wife, Toh Puan Datuk Patinggi Raghad Kurdi Taib. Photo: JAPEN

KUCHING: The terms and conditions laid out in the Commercial Settlement Agreement (CSA) between the Sarawak government and Petroliam Nasional Berhad (Petronas) have been implemented.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said the agreement took into account Sarawak’s rights in the oil and gas industry on land and off its coast.

“A joint committee between the federal government, Sarawak and Sabah has also been set up and co-chaired by the Minister of Finance and Senior Minister for Works on oil royalty and cash payment.

“This is to discuss Sarawak and Sabah’s claims related to oil and gas through commercial settlement without going through legal processes.

“After a year of active negotiations between the state and Petronas, a CSA was signed between Sarawak and Petronas on Dec 7, 2020 and to date the terms and conditions of the agreement have been implemented by both parties

“In this case, Sarawak’s involvement through Petroleum Sarawak Berhad (Petros) has been signed with Petronas,” he said.

Meanwhile on gas distribution, Abang Johari said Sarawak has been exempted from requiring to obtain federal government permission and licensing to conduct its gas distribution activities.

He said the notification of the exemption under Petroleum Development Act (PDA) 1974 and Control of Supplies Act (CSA) 1961 was gazetted and came into force on June 1, 2021.

“On September 9, a ceremony to present the exemption letter for regulation of LPG in Sarawak was held.

“The Federal Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi attended the ceremony and handed over the letter to the state government,” he said.