CM: DUN never endorsed PDA 1974

KUCHING: The State Legislative Assembly (DUN) never endorsed the Petroleum Development Act (PDA) 1974, said Chief Minister Datuk Patinggi Abang Johari Tun Openg.

In his winding up speech yesterday, Abang Johari said the Oil Mining Ordinance of 1958 is a law that still remains in force today.

"The Oil Mining Ordinance 1958 (OMO 1958) gives Sarawak full regulatory authority over all persons and companies involved in the operations of the oil and gas industry in Sarawak," he told the august House yesterday.

"Petronas applied to the Federal Court to seek a declaration that the Sarawak OMO 1958 was already repealed implicitly by the Petroleum Development Act (PDA). We are glad that this application to seek the declaration in the Federal Court was rejected by the Federal Court on June 22, 2018."

Abang Johari stressed that Sarawak is proceeding with enforcing the OMO 1958 and the Gas Distribution Ordinance 2016 effective July 1, 2018 through the Sarawak Minerals and Management Authority (SMMA) through Petroleum Sarawak Bhd (Petros).

"The provisions for enforcement are tightened by the Oil Mining (Amendment) Bill 2018 passed in this august House last week on July 10, 2018," he said.

With the Gas Distribution Ordinance, he said, the Sarawak government will work closely with the Federal Ministry of Domestic Trade and Consumer Affairs and Petronas regarding the distribution of natural gas to consumers in Sarawak.

"We hope that Petronas can understand the position that the Sarawak government is taking. We wish to assure oil and gas industry players in Sarawak that the Sarawak government is reasonable and is business friendly," he said.