Sapa urges Petronas to comply with Sarawak’s OMO 2018
KUCHING: The Sarawak Association for People’s Aspiration (Sapa) is calling for Petroliam Nasional Berhad ( Petronas) to comply with the state’s existing laws under the Oil Mining (Amendment) Ordinance (OMO) 2018.
Its president Lina Soo said a memorandum from the association has been sent to Petronas president Tan Sri Wan Zulkiflee Wan Ariffin seeking the cooperation from Petronas management as well as other oil and gas operators to comply with Sarawak laws.
“We have delivered the memorandum after our peaceful gathering at Miri City Council football field last Saturday to the Petronas president through Petronas Sarawak Operations.
“It is the aspiration of the people of Sarawak that all rights and interests of oil and gas be controlled and enforced by the Sarawak government in accordance with the existing laws under OMO,” she told a press conference here yesterday.
Soo pointed out that in the memorandum, Petronas was called on to comply with several key points including that the state government has with effect from July 1, 2018 enforced the laws as stipulated under OMO on all upstream and downstream operations that the requirement for procurement of licences and leases to enable legal operation must be complied with
We have delivered the memorandum after our peaceful gathering at Miri City Council football field last Saturday to the Petronas president through Petronas Sarawak Operations.
immediately.
“Petronas shall also refrain from and cease to award any new prospecting areas, concessionary blocks and new Production Sharing Contracts (PSCs) with immediate effect,” she said, adding that this right and function is governed by OMO under the direct authority of Petroleum Sarawak Berhad (Petros).
She noted that the memorandum also called for Petronas to build an integrated petroleum complex in Bintulu to create value to the oil and gas industry investing in new technologies, new products and sophisticated infrastructure to provide development and job opportunities as Sarawak is the major producer of oil and gas in Malaysia.
“Aside from that, Petronas shall establish a petroleum university in Sarawak for training, management, internship and entrepreneurship not only in the petroleum industry
Lina Soo, Sapa president
but also to function as a leading research centre for carbon-free sources of energy to realise a sustainable renewable energy system for the future.”
The memorandum also called for PSC MLNG SATU operated by Sarawak Shell to be handed over to Petros upon its expiry in 2020 in view that Petros is the company wholly owned by the state government entrusted to manage, govern and execute all dealings, licensing, leasing and enforcement of OMO, who shall determine all future prospects and operations of any mining areas for new and expiring ones.
With Petros now in active discussion with Petronas on Sarawak oil rights, Soo questioned the need for Sarawak’s whollyowned oil and gas company to do so when Petronas should be the one seeking approval from Petros to comply with Sarawak’s Oil Mining (Amendment) Ordinance (OMO) 2018.
“It is for Petros to manage, govern our mining activities and give instructions on technical and financial arrangements to Petronas but not to negotiate with Petronas in any way which can compromise Sarawak’s territorial and sovereignty rights.”