World of difference between ‘regulatory power’ and ‘ownership’ – Chong
KUCHING: Democratic Action Party (DAP) state chairman Chong Chieng Jen wants Chief Minister Datuk Patinggi Abang Johari Tun Openg to be truthful to the people of Sarawak by not equating ‘regulatory power' in the oil and gas industry with ‘ownership' of oil and gas found in the state.
According to Chong, who is also Pakatan Harapan (PH) state chairman, there is a world of difference between ‘regulatory power' in oil and gas industry and ‘ownership' over oil and gas.
“The Sarawak BN (Barisan Nasional) is just trying to confuse the people with this notion of ‘regulatory power' to cover up its failure to exert any claim over the ‘ownership' of oil and gas of Sarawak or obtain the 20 per cent oil and gas royalties.
“The announcement made by Abang Jo in relation to Sarawak having full ‘regulatory power' over the oil and gas industry is nothing but mere hot air when ‘ownership' of oil and gas still remains vested in Petronas under the Petroleum Development Act 1974.
“This is evident when after all the talk of ‘full regulatory power', Sarawak will still only get five per cent of the oil and gas royalties for oil and gas extracted from Sarawak, and nothing extra,” he said in a press statement yesterday.
His response came following Abang Johari describing Chong's action to table a motion in the Parliament to amend the Petroleum Development Act 1974 as ‘hot air'.
“He didn't expect me to do this (to exercise the state rights on mining ordinance under the Malaysia Agreement 1963). To implement the law which has been stated in the institution and they didn't expect my move,” Abang Johari told reporters after officiating the Sungai Bintangor riverfront bridge here on Sunday.
“We got the rights, and the regulated control is with us as stated in the (Federal) constitution,” the chief minister added.
Chong said even for the socalled ‘regulatory power', it only involved another layer of licensing requirement as the Prime Minister and Petronas would remain the ultimate decision-maker in the industry – having control over export, import, industrial development and finance.
“Moreover, laws and regulations in the oil and gas industry ought to conform to international standards which Sarawak cannot unilaterally impose its conditions.
“Using the concept of a company as an analogy to our case of the oil and gas industry in Sarawak, the shareholders of the company are the owners of the company, which in our case is Petronas by virtue of the Petroleum Development Act, 1974.
"Petronas has the ownership of all the oil and gas found in Sarawak. The managing director is the overall person in-charge of the company which, in our case, is the Prime Minister. The CEO and directors of Petronas are like the managers employed to manage the company.
“With the so-called ‘regulatory power' given to Sarawak over oil and gas industry in Sarawak, the state's role is just analogous to a regional manager who has no ownership rights over the assets of the company (which is the oil and gas), but receives a salary for his work.
”That also explains why Abang Jo has repeatedly mentioned the phrase ‘Prime Minister has agreed to'. It is just like the boss having agreed to engage Sarawak as its regional manager to run some of the operation while the main decision-making remains with the Prime Minister and the ownership remains with Petronas, which is also under the control of the Prime Minister.”