Dato IR Lo Khere Chiang says Sarawak government going the right way on oil and gas issue
Batu Kitang State Assemblyman, Dato Ir Lo Khere Chiang has expressed confidence in Sarawak’s direction in the oil and gas sector, despite concerns following ConocoPhillips’ withdrawal from the Salam-Patawali deepwater project.
He said the project is still in the feasibility stage, which explains why ConocoPhillips is able to exit the venture at this point. However, he stressed that this should not be seen as a loss for Sarawak.
“The door is not closed. There remains an opportunity for ConocoPhillips to return in the future, this time under fairer terms for Sarawak, with PETROS representing the state’s interest,” he said.
He suggested that a more balanced partnership could be a 50:50 joint venture, where Sarawak might allocate 5 percent to the federal government, in recognition of the same percentage that has been given to the state for the past 50 years.
“Considering that the oil and gas come from Sarawak’s own territory, we would be generous to even offer that,” he added.
Citing Guyana’s model with ExxonMobil, where the government receives a substantial share of revenue without any upfront investment, Lo said Sarawak deserves similar treatment.
He pointed out that Sarawak has received only a 5 percent cash payment under the Petroleum Development Act 1974, a law passed during the Emergency period without the approval of the Sarawak State Legislative Assembly.
“There are no records in our Hansard showing that the Act was ever passed by our state assembly,” he said.
He also expressed disappointment that despite Sarawak’s large contribution to the national revenue, it still lags in development and infrastructure due to limited federal allocation.
He noted that Sarawak’s Oil Mining Ordinance 1958 predates the PDA74 and remains a valid legal basis for Sarawak to regulate its own resources.
“Whether or not the courts rule in our favour, the fact remains that Sarawak must play a greater role in managing and benefiting from its natural wealth,” he said.
Lo questioned the continued role of PETRONAS in negotiating deals for Sarawak when the operational work is often carried out by international companies.
“If Shell or ConocoPhillips are doing the work, PETROS should be able to deal directly with them. There’s no reason for PETRONAS to act as a middleman when it isn’t operationally involved,” he said.
He stressed that Sarawak remains open to global investors, as long as the terms are fair, transparent, and mutually beneficial.
“This is not about confrontation. It’s about restoring fairness and fulfilling the promises made under the Malaysia Agreement 1963,” he said.
Lo voiced support for Premier Abang Johari’s firm stance on Sarawak’s rights, adding that the GPS government is steering the state toward a stronger, self-determined future.
“Let the cynics talk. Sarawak is moving forward with confidence and clarity, taking control of its own destiny,” he said.
Related News
Miri religious school renovation completed
The construction of a covered multi purpose hall at a religious school here has beenRead More
Kota Sentosa Assemblyman hands over RTP project awards to improve drainage and public facilities
Sentosa State Assemblyman Wilfred Yap today handed over Letters of Award for two Rural TransformationRead More
Comments are Closed