Commercial considerations cannot override Sarawak’s rights, says senator

Senator Ahmad Ibrahim of Sarawak has stated that commercial interests related to Petronas' operations should not supersede the state's constitutional rights. This assertion comes in response to former law minister Zaid Ibrahim's contention that Petronas would suffer significant losses should Sarawak's gas aggregator, Petros, assume control.

Senator Ahmad emphasized that the vast sums of money at stake cannot dictate who holds legal authority over Sarawak's oil and gas sector. He stressed that once a constitutional or legal right is recognized, it does not vanish simply because acknowledging it might affect another entity's revenue. Zaid had previously disputed Sarawak premier Abang Johari Openg's assurance that Petros would not undermine or displace Petronas.

However, Ahmad refuted Zaid's estimate of RM10 billion in annual losses for Petronas, arguing that the figure represents broader profit estimates from Sarawak's gas exports, not confirmed financial setbacks for Petronas. Ahmad also challenged the notion that the present arrangement forces Petronas to relinquish its status as the national petroleum company.

He pointed out that Sarawak's legal framework, including laws like the Oil Mining Ordinance 1958, existed prior to Malaysia's formation in 1963 and the Petroleum Development Act in 1974. Senator Ahmad clarified that a joint declaration signed by Prime Minister Anwar Ibrahim and Abang Johari on May 21 last year established a framework where federal and state laws coexist.

He stressed that this situation should not devolve into a zero-sum game between Petronas and Petros, or Malaysia and Sarawak. Instead, he urged a mature federation capable of accommodating both entities.