S’wak now has authority over O&G activities

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Abang Johari speaks to reporters at the Redeems Centre in Kampung Apar. — Photo by Muhammad Rais Sanusi

BAU: Chief Minister Datuk Patinggi Abang Johari Tun Openg confirmed that as of yesterday, Sarawak would exercise its powers under state laws relating to oil and gas activities in the state.

Speaking to reporters during the 2018 Redeems Gawai Carnival dinner at the Redeems Centre, Kampung Apar here on Saturday, he said all companies in the oil and gas industry, including their contractors, sub-contractors and vendors, would have to apply for licences from the Sarawak government in order to operate in the state, effective July 1.

This, he added, also includes the Gas Distribution Ordinance 2016, which came into force on that date as well.

“The Sarawak Oil Mining Ordinance (OMO) 1958 stipulates that all oil and gas industry players in Sarawak including Petroliam Nasional Berhad (Petronas) should comply with it.

“All contractors, sub-contractors and vendors in the oil and gas industry must also submit their details and details of their activities to the state government as well. They can start to apply for the license tomorrow (yesterday),” he said.

Meanwhile, the Chief Minister’s Office (CMO) yesterday issued a statement regarding the state laws relating to oil and gas activities in Sarawak.

The statement mentioned that regulations made under the ordinance on licensing have been approved by the Sarawak government and that the process of implementing it will commence immediately.

“As for state laws which are already in force like the Oil Mining Ordinance 1958 and the Land Code 1958, the relevant authorities will also begin the process of ensuring compliance with these laws, including gathering the necessary information from all industry players, as well as a more detailed comprehensive engagement with them.

“The state (Sarawak) accepts that this process will take time and that is why the industry players would be permitted to conduct their business and operations as usual up to the end of 2019 and at the same time, taking the necessary steps to ensure compliance with the state laws,” said the statement.

Abang Johari had, on March 6 this year, announced that the Sarawak government would begin to exercise its power under the state laws relating to oil and gas activities in the state effective July 1.