KUCHING: Sarawak United Peoples Party (SUPP) Secretary General Datuk Sebastian Ting has responded to remarks made by Machang MP Wan Ahmad Fayhsal regarding the ongoing dispute between Petronas and Sarawak’s oil and gas company, Petros.
“We welcome the call for a ‘win-win’ solution, but I must express disappointment over the so-called warning issued by the Machang MP, suggesting that Sarawak’s actions may weaken Petronas. Such a statement is unnecessary, unhelpful, and carries a confrontational tone,” said Ting in a press statement.
He clarified that the current dispute is not about oil royalties, as widely misunderstood. “The core issue is Petronas’ refusal to recognise the Distribution of Gas Ordinance 2016 – a law that was validly passed under powers granted to Sarawak through the Borneo States (Legislative Powers) Order, 1963,” he explained.
“This legislative power over the distribution of gas was recommended by the Inter-Governmental Committee in 1963 and forms a fundamental part of Sarawak’s terms for joining the Federation. Petronas and the Federal Government must honour this foundational agreement,” Ting stressed.
He hoped that Sarawak does not seek to undermine Petronas. “Whether Petronas remains strong or not depends on its own management. Sarawak’s rightful exercise of legislative and executive authority should not be misinterpreted as an attack on Petronas,” he said.
Ting also highlighted the unsustainable practice of exporting 94 peratus of Sarawak’s gas to countries like Japan and Korea, saying, “This leaves little for local industrial development and energy needs. The appointment of Petros as the gas aggregator ensures fair domestic allocation and supports Sarawak’s ambition to become an energy hub in ASEAN.”
He further pointed out that Petronas stands to benefit from collaborating on the Sarawak Gas Roadmap, clean energy projects, and power generation initiatives.
“Although Petronas may lose some downstream distribution roles, it will gain much more through cooperation with the Sarawak Government and Petros,” he added.
“Petronas’ continued disregard for Sarawak’s laws does not serve the national interest, nor does it help the company’s own business,” Ting stated, urging all parties to heed the Premier of Sarawak’s call for mutual respect between federal and state laws.
“The path to resolution lies in upholding the legal rights of both parties—not in dismissing Sarawak’s constitutional authority.”
Oleh Connie Chieng