SUPP Kuching Branch Calls for Support in Safeguarding Sarawak’s Oil and Gas Rights

suppadmin | April 18, 2025

The Sarawak United Peoples’ Party (SUPP) Kuching Branch has urged Sarawakians to support Sarawak Petros in its legal challenge against Petronas’ application to the High Court for a delay in recovering the RM7.95 million bank guarantee. The branch supports Sarawak Petros’ bid to have the High Court declare Petronas’ recovery request, submitted on October 14 last year, as unreasonable and invalid.

Under Section 7 of the 2016 Natural Gas Distribution Act, all developers must obtain a license from the Sarawak government. However, Petronas has yet to secure this license, making its natural gas supply agreement signed on December 30, 2019, legally questionable. Consequently, any claim for bank guarantees should be deemed void. Sarawak Petros has solid legal grounds to oppose Petronas’ application for an extension, ensuring the High Court ruling clarifies the legal ramifications of Petronas’ unlicensed operations.

Furthermore, SUPP Kuching Branch reiterates its support for Premier Datuk Patinggi Abang Johari’s win-win approach in managing Sarawak’s oil and gas resources. The Premier has emphasized that while contractual obligations should be honored, they must not undermine Sarawak Petros’ role as the natural gas aggregator, nor should they contradict the provisions of the 2016 Natural Gas Distribution Regulations. He has insisted that Petronas and Sarawak Petros must operate as partners, jointly advancing national and Sarawakian interests while prioritizing Sarawak’s benefits.

SUPP Kuching Branch underscores that Sarawak’s government has made initial progress through negotiations, securing the natural gas aggregator position for Sarawak Petroleum. This achievement has been possible due to strong public support, which has empowered the Sarawak government to push forward its oil and gas rights agenda.

Sarawak’s offshore oil and gas rights are based on the Sarawak 1958 Oil Mining Ordinance, which remains in effect. While Malaysia’s Parliament passed the 1974 Petroleum Act during the 1969 national emergency, the Act was never re-evaluated after the emergency was lifted in 2011. This has led to a legal coexistence between the 1958 Oil Mining Ordinance and the 1974 Petroleum Act.

SUPP Kuching Branch stresses that the fight for Sarawak’s rights must continue. The only way to safeguard Sarawak’s interests is for its people to support the government in negotiating with the federal government under the 1963 Malaysia Agreement (MA63). These negotiations, led by the Premier and the Prime Minister, are crucial in resolving existing legal conflicts and securing Sarawak’s rightful share in the nation’s oil and gas industry.

Given that Sarawak’s offshore oil and gas industry is vital to the state’s economy and social development, SUPP Kuching Branch urges Sarawakians to rally behind Sarawak Petros. Public backing is essential in ensuring Sarawak’s oil and gas interests remain protected, ultimately strengthening Sarawak’s position in ongoing negotiations.