Asfia: Laws, constitution on Sarawak’s side in O&G ownership
KUCHING: History, international law, Federal Constitution and state laws are on Sarawak’s side where oil and oil fields ownership are concerned, said State Legislative Assembly (DUN) Speaker Datuk Amar Mohamad Asfia Awang Nassar.
He pointed out that before Malaysia was formed, the Sarawak (Alteration of Boundaries) Order in Council was made by the Queen and gazetted in 1954, which stated that “the boundaries of the Colony of Sarawak are hereby extended to include the area of the continental shelf being the seabed and its subsoil which lies beneath the high seas contiguous to the territorial waters of Sarawak”.
“The article in the Malaysia Agreement (MA) 63 said that territory of Sarawak shall be that before the formation of Malaysia,” he told reporters Friday a er receiving a courtesy call from Kelantan DUN Speaker Dato Abdullah Ya’kub and his delegation at the DUN Complex here yesterday.
Asfia noted that the Petroleum Development Act 1974, the Continental Shelf Act 1966, and other related Acts of Parliament had the effect of acquiring Sarawak’s continental shelf, seabed and subsoil, but these Acts and related laws ‘flagrantly violate’ Article 2 of the Federal Constitution.
He quoted Article 2(b) that reads: “Parliament may by law (b) alter the boundaries of any State, but a law altering the boundaries of a State shall not be passed without the consent of the State (expressed by a law made by the Legislature of the State) and the Conference of Rulers”.
“When you acquire the continental shelf, two conditions must be satisfied. There must be consent by the State DUN and the Conference of Rulers. Neither have been obtained,” he stressed.
Asfia further stated that if the contention of the federal government is that the continental shelf of Sarawak is constitutionally and legitimately acquired under PDA 1974, even if it transgressed Article 2 of the Federal Constitution, then there must be compensation.
“The federal government must pay compensation to the state government at market price. It must be the entire length and breadth of the continental shelf, together with the petroleum beneath the continental shelf.
“Petronas acquired the land under PDA 1974. If you acquire this land, you must pay. You cannot take away the state land just like that without compensation,” he said, adding that Article 83 (1) and (2) of the Federal Constition provide for that.
On licensing, Asfia said that before PDA and Petronas were born, Sarawak had passed its Oil Mining Ordinance (OMO) in 1958.
“You may have the right to explore and exploit the oil but you must get the licence from the state. We hold the licence,” he said.
OMO 1958’s Section 15 states that “the Governor in Council may grant an oil exploration license over the lands specified therein subject to the payment by the licensee of the prescribed fee” and Section 3 states “any person found to be exploring, prospecting or mining for crude oil, petroleum or natural gas upon any land or doing any act with a view to such exploring, prospecting or mining on the same and without having received lawful authority so to do under any of the provisions of this Ordinance or in breach of any of the conditions thereof, shall be guilty of an offence”.
“As the oil originates from Sarawak, and the sale made takes place in Sarawak, we have the right to impose State Sales Tax,” he said, saying that Sarawak has the right to collect revenue as stated in Item 2 Part lll 9th Schedule of the Federal Constitution — Revenue from lands, mines and forests.