Commercial considerations cannot override Sarawak’s rights, says senator

Senator Ahmad Ibrahim of Sarawak stated that commercial interests should not supersede the state's constitutional rights concerning the oil and gas sector. He argued that the significant financial involvement does not determine who holds authority over the industry. The senator emphasized that if a constitutional or legal right exists, it remains in effect regardless of its impact on another entity's revenue.

This assertion came in response to claims by former law minister Zaid Ibrahim, who contended that Petronas would suffer substantial losses if Sarawak's gas aggregator, Petros, took over its gas aggregation role. Zaid had contested a promise by Sarawak's premier, Abang Johari Openg, that Petros would not undermine Petronas. Ahmad disputed Zaid's claim that Petronas would lose RM10 billion annually, arguing that the figure represented overall profit estimates from Sarawak's gas exports, not specific losses that Petronas would incur.

He pushed back against the notion that current arrangements force Petronas to relinquish its status as the national petroleum company. Ahmad highlighted that Sarawak's laws, such as the Oil Mining Ordinance 1958, were in place before Malaysia's formation in 1963 and the Petroleum Development Act's enactment in 1974. He recalled a joint declaration signed by Prime Minister Anwar Ibrahim and Abang Johari on May 21 last year, which established a framework for federal and state laws to coexist.

According to Ahmad, this framework should not turn into a competition between Petronas and Petros, or Malaysia and Sarawak. He stressed that a well-functioning federation should be able to accommodate both perspectives.