Anwar (left) and Abang Johari exchange views during their meeting. – PMO Malaysia photo
KUCHING (May10) : Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg have have reached an agreement to settle all issues between Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros) through dialogue.
“This step is crucial to unlock the vast potential of the collaboration between Petronas and Petros, ensuring its effective implementation.
“This includes expediting the commercial supply of energy to Asean countries,” said a statement issued by the Prime Minister’s Office (PMO) after the two leaders met in Perdana Putra, Putrajaya on Friday.
The meeting, which was held at Perdana Putra, was also attended by top officials from Petronas and Petros.
The statement said the meeting took place in a friendly and harmonious atmosphere based on the spirit of the Federation.
The meeting was held after Anwar issued a statement on May 4 that further talks to finalise matters involving Petronas and Petros would be held as soon as Abang Johari returned from an overseas working trip.
Tensions have been escalating between Petronas and Petros in a licensing dispute, after Sarawak had issued a legal notice to Petronas subsidiary Petronas Carigali Sdn Bhd (PCSB) for allegedly operating without a permit at its Miri Crude Oil Terminal.
Abang Johari, during an event in London, had also revealed that he received a phone call from Anwar to find an equitable and amicable resolution to the ongoing dispute between Petronas and Petros.
Business Times reported on May 2 that Petronas Carigali was given 21 days in the notice dated April 30 to obtain the necessary licence, failing which it could face financial penalties under Section 21A of the Distribution of Gas Ordinance (DGO) 2016.
It had said the company – the upstream arm of Petronas – had breached Section 7(e) of the DGO 2016, which requires a licence for the construction, management, or maintenance of gas pipelines or related facilities.
The DGO came into effect on July 1, 2018, with Petros made the regulator and exclusive gas aggregator for the state, as part of the Sarawak government’s move to protect the state’s autonomy over its natural resources.
Petronas in its response had said Petronas Carigali is statutorily authorised under the Petroleum Development Act (PDA) 1974 to undertake the company’s activities and comply with all applicable laws in doing so.