What is the core issue resolved between Petronas and Petros?

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Petronas and Petros Gas Distribution Rights in Sarawak Resolved

The core issue resolved between Petronas and Petros pertains to gas distribution rights within Sarawak. Prime Minister Datuk Seri Anwar Ibrahim announced that these matters have been settled through a series of negotiations, including his direct discussions with Sarawak Premier Tan Sri Abang Johari Tun Openg. This resolution clarifies the operational frameworks and acknowledges the roles of both national and state entities in the oil and gas sector.
Overarching Federal Law Remains Paramount

The Petroleum Development Act 1974 (PDA 1974) continues to be the governing legislation for Malaysia's oil and gas industry nationwide. This federal act applies across the country and has been accepted by both the Sarawak state government and Petros. The Federal Government also recognises the establishment of Petros as an entity enabling Sarawak to pursue its own gas exploration and distribution initiatives, fostering a collaborative approach within the established legal framework.
Sarawak's Gas Distribution Ordinance Position Clarified

The Sarawak Gas Distribution Ordinance 2016 has been clarified to not supersede the PDA 1974, the Federal Constitution, or other federal laws. Consequently, Petronas' overarching position and authority nationwide remain unaffected by this state-level ordinance. This ensures that the national framework continues to guide the industry while allowing for state-specific operational control where appropriate and legally permissible.
Cooperative Framework for Gas Distribution

Petronas retains its nationwide authority but has agreed to allow Sarawak control over gas distribution for domestic purposes within the state. This arrangement exemplifies cooperation, with Petronas involving Petros in projects within Sarawak, and Petros, in turn, including Petronas in exploration, hydrogen ventures, and other initiatives across Malaysia. All existing agreements between the entities remain intact, reflecting a mutual understanding and acceptance of the established terms.

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What is the core issue resolved between Petronas and Petros?

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