Petronas’ statement shows smack of arrogance, insensitivity – Abdul Karim

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Datuk Abdul Karim Rahman Hamzah

SIBU: Minister of Tourism, Arts, Culture, Youths and Sports Datuk Abdul Karim Rahman Hamzah has described Petroliam Nasional Berhad’s (Petronas) statement as showing smack of arrogance and insensitivity.

He was referring to Petronas’ statement to maintain its claim over Sarawak’s oil and gas resources, stating it has exclusive ownership of the petroleum resources in Malaysia. The statement on also said it is the sole regulator of the upstream sector in the country.

Abdul Karim said this does not bode well with Sarawak and its people, prompting him to ask whether this was a new form of ‘colonisation’.

“It will not go down well with Sarawak and its people. Here we have a company telling the largest state in Malaysia that its oil and resources are exclusively owned by them and only them are the sole regulator of its upstream business.

“Is this a new form of colonisation? Petronas that has grown into a global corporate entity from the resources of the state, has got big headed and biting back the hand that has fed it all these years,” he said today.

The Petronas’ statement was issued to in response to the Chief Minister’s Office’s July 1 press statement on its intent to exercise its power under the relevant Sarawak laws relating to oil and gas activities in Sarawak.

All companies including their contractors, sub-contractors and vendors in the oil and gas industry have to apply for licences from the Sarawak government in order to operate in Sarawak effective July 1. They are required to do so under the Sarawak Oil Mining Ordinance (OMO) 1958, and other regulations.

The OMO stipulates that all oil and gas industry players in Sarawak, including Petronas, should comply with it. Legal and appropriate action will be taken against those who fail to comply with the Ordinance, and this should include the upstream activities carried out by Petronas.

Application for licences must be made in a form prescribed in OMO and submitted to the Sarawak Minerals and Management Authority (SMMA) through Petroleum Sarawak Bhd (Petros).

Chief Minister Datuk Patinggi Abang Johari Tun Openg has emphasised the necessity of enforcing OMO given that the rights enabling oil and gas industry players to operate in Sarawak belong to the Sarawak government.

Under the new regulation, Petronas must only deal with Petros to produce or extract oil and gas from beneath land within Sarawak’s boundaries.