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 Petroleum Sarawak Bhd (Petros) will not displace or undermine Petronas. Zaid asserts that this assurance does not reflect reality, citing Petros' pursuit of Petronas' gas aggregator role in Sarawak as a significant issue. He explains that this role is not a minor adjustment, but a key aspect of Petronas' business.

Abang Johari had stated that Petros' expanding role in the Sarawak gas sector was not intended to displace Petronas and that Sarawak remains committed to working with the national oil company. Meanwhile, Zaid argues that the assurance cannot be solely judged by verbal commitments, but by the tangible effects of the changes being implemented.

He highlights that Petronas stands to lose billions if it loses control of its gas aggregation role in Sarawak, which is currently worth around RM10 billion annually. Zaid also points out that Sarawak is challenging whether the Petroleum Development Act 1974 and other federal petroleum laws apply in the state, which could impact Petronas' legal foundation.

He warns that if individual oil-producing states assert control over petroleum resources and key supply chain elements, it would weaken Petronas' scale and ability to serve the national interest. Zaid emphasizes that any settlement must start with a clear recognition of Petronas' rights over Malaysia's oil and gas resources under the Petroleum Development Act, and further negotiations should consider Sarawak's needs and circumstances without challenging Petronas' legal rights.