Abang Jo’s assurance on Petros ‘does not match reality’, says Zaid

Former law minister Zaid Ibrahim has criticized Sarawak Premier Abang Johari Openg's assurance that the state-owned company Petros will not undermine or displace Petronas. Zaid claims that the assurance "does not match reality," citing Petros' bid to take over Petronas' gas aggregator role in Sarawak. He argues that this is not a minor adjustment, but a significant threat to Petronas' core business.

Abang Johari had previously stated that Petros' expanding role in Sarawak's gas sector was not meant to replace Petronas, and that the state remains committed to working with Petronas while building its own processing capabilities for the state's resources. Zaid, however, insists that any cooperation between the two companies must be based on the reality of their impact, not just on assurances.

He points out that Petronas stands to lose billions of dollars if it loses control of its gas aggregation role in Sarawak, which is estimated to be worth around RM10 billion annually. Zaid also highlights the broader legal issues at play, noting that Sarawak's actions challenge the very foundation upon which Petronas was built through the Petroleum Development Act 1974 and other federal petroleum laws.

He warns that permitting individual oil-producing states to control petroleum resources and key parts of the supply chain would weaken Petronas' scale and undermine its ability to serve the national interest. Zaid concludes that for any settlement to occur, the starting point must be a clear recognition of Petronas' rights over Malaysia's oil and gas resources under the Petroleum Development Act, which must be non-negotiable.

Only then can discussions begin on Petros' role, taking into account Sarawak's needs and circumstances, without undermining Petronas' legal rights.