A coalition of NGOs from Malaysian Borneo has condemned Petronas’s latest decision of seeking legal recourse in its bid to retain control over oil and gas (O&G) resources in Sarawak.
KUCHING (Sept 8): A coalition of non-governmental organisations (NGOs) from Malaysian Borneo has condemned Petroliam Nasional Bhd’s (Petronas) latest decision of seeking legal recourse in its bid to retain control over oil and gas (O&G) resources in Sarawak.
In a joint statement, the NGOs regard the national petroleum corporation’s attempt of seizing resources that rightfully belong to Sarawak as ‘humiliating, cruel and unjust’.
“Petronas’ actions disregard Sarawak’s special autonomy and the inherent rights of its people, as enshrined in both domestic and international laws.
“The move furthers the legacy of exploitation and marginalisation that Sarawak and Sabah have endured for decades.
“According to the Oil Mining Ordinance of 1958, all O&G resources within 200 nautical miles off Sarawak are the property of the state.
“However, Petronas has monopolised these resources for years, funnelling wealth to Peninsular Malaysia at the expense of Sarawak and Sabah.
“Prominent figures, including Tengku Razaleigh Hamzah, had disclosed that since 1974, Petronas had paid RM40 billion annually to Umno, with only a fraction of that amount benefitting Sarawak and Sabah,” said the group in the statement yesterday, which was signed by Sarawak Association for People’s Aspirations (SAPA) publicity and information chief Peter John Jaban, Borneo’s Plight in Malaysia Foundation (BoPiMaFo) president Daniel John Jambun, Sabah Sarawak Rights Australia New Zealand (SSRANZ) president Robert Pei, Republic of Sabah North Borneo (RSNB) president Moses Anap, and Gabungan Orang Asal Sabah Sarawak (GOASS) representative Timothy Jagak.
In the statement, the NGOs also highlighted that the Continental Shelf Act 1966 (CSA66) and Petroleum Development Act 1974 (PDA74) had transferred the control over Sabah and Sarawak’s O&G resources to the federal government, a breach of the Constitutional Safeguards outlined in the Malaysia Agreement 1963 (MA63).
These safeguards meant to protect the territorial boundaries and resources of the two Borneo states, which the NGOs claimed should not have been altered without their consent.
Moreover, they argued that international laws, specifically the United Nations Convention on the Law of the Sea (UNCLOS), supported Sarawak and Sabah’s ownership of these resources, in view of the resources being within the 200 nautical-mile distance regulated under UNCLOS.
“Disputes over the ownership and regulation of these resources should be decided by the International Court of Justice (ICJ), not domestic courts influenced by federal interests,” stressed the NGOs.
In support of this stance, the NGOs said the Sabah Action Body Advocating Rights (SABAR) had filed an originating summons in the High Court of Borneo, challenging the validity of the Territorial Sea Act 2012, which limited the state’s jurisdiction to only three nautical miles off its coast.
The NGOs also accused Petronas of economically-exploiting Sarawak and Sabah since 1974, leading to significant wealth disparities between the Borneo states and the rest of Malaysia.
They also pointed out that lack of reinvestments into the local infrastructure, education and social services had left the resource-rich region lagging in development.
“Thus, Petronas must return the profits taken from Sarawak and Sabah, with interests applied in line with international financial standards, to compensate for the decades of economic injustice.
“We also call for Sarawak’s state-owned entity, Petroleum Sarawak Bhd (Petros), to assume full control over Sarawak’s O&G resources, and for Sabah to regain authority over its natural wealth, which has similarly been diverted through federal agreements.”
The NGOs also argued that the formation of Malaysia in 1963 was based on an equal partnership between then-Malaya, Sabah and Sarawak, but that this partnership had been consistently undermined and their rights continued to be violated.
It was reported on Saturday that Petronas was mulling over filing a court injunction to maintain its position as the sole guardian of Malaysia’s O&G resources.
Channel News Asia (CAN) quoted government officials close to the situation as saying that such a move was mooted in light of a determined challenge by Sarawak for greater control over the trading and extraction of gas and other oil-related products in the state.
It was understood a court injunction would temporarily halt any action Sarawak could take against Sarawak.
CNA also reported that unless the Sarawak government decided to resume negotiations with Petronas over the control of these natural resources, the dispute could escalate into a full-blown court battle.