Dateline 2018-08-15, Today Online:
For Sarawakians, Pakatan Harapan’s (PH) perceived lack of commitment to the fulfilment of its oil royalties and other provisions of the Malaysia Agreement 1963 (MA63) has defined the coalition’s first 100 days in power.
Mr Abdul Karim Rahman Hamzah, vice-president of Sarawak’s ruling Parti Pesaka Bumiputera Bersatu (PBB), said PH’s failure to increase the state’s oil royalty from five to twenty per cent was “most glaring”.
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Dateline 2018-08-06, FMT:
Economic Affairs Minister Mohamed Azmin Ali has told Parliament that Pakatan Harapan’s (PH) election promise of giving a 20% “royalty” to oil-producing states was based on “a loose definition of the word… The term cash payment is not used generally, but it is generally understood to mean a royalty”.
He said a special Cabinet committee had been formed to negotiate with the oil-producing states on how to increase the 15% payments to them, on top of the existing 5% of gross profit cash payment under the Petroleum Development Act (PDA).
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And here’s me thinking, isn’t politics the point of the talks?
Dateline 2018-08-01, Borneo Post:
Chief Minister Datuk Patinggi Abang Johari Tun Openg says the issue of oil royalty needs to be discussed professionally between Petronas, representing the federal government, and Petros, which represents the Sarawak government.
He said politics must not be too dominant in the discussion, which was now ongoing between the two parties.
According to him, the discussion started following the Federal Court decision in June to dismiss Petronas’s proceeding to obtain court declaration to have exclusive ownership on oil and gas resources in the state.
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Dateline 2018-07-18, Borneo Post Online:
Minister of International Trade and E-Commerce Dato Sri Wong Soon Koh waxed philosophical when asking Petroliam Nasional Berhad (Petronas) to consider withdrawing their suit on exclusive ownership of oil and gas resources in Sarawak.
Asking the court to interpret the Petroleum Development Act 1974 (PDA74) without first recognising the supremacy of the Malaysia Agreement 1963 (MA63) is like looking at a leaf on a tree without recognising that, without the roots, there would be no tree and no leaf, Wong said.
“The leaf (like the PDA) is insignificant. The roots give life to the tree just like the Malaysia Agreement gave life to Malaysia.”
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Dateline 2018-07-12, Borneo Post:
State Reform Party Sarawak (STAR) president Lina Soo described it as outrageous when Kota Sentosa assemblyman Chong Chieng Jen defended the federal government and Petroliam Nasional Berhad (Petronas) by objecting to the Oil Mining Ordinance 1958 (OMO58) which pre-dates the Malaysia Agreement 1963 (MA63) and the Petroleum Development Act 1974 (PDA74).
Soo said by voicing his objection to the Oil Mining (Amendment) Bill, 2018 in the State Legislative Assembly (DUN), Chong was in effect rejecting Sarawak’s rights to its oil and gas resources and giving the rights absolutely to Petronas on a silver platter.
“What is wrong with Sarawak asserting its authority and power to regulate the mining industry in Sarawak?” she asked in a press statement yesterday.
Soo asked if Chong was implying that Petronas has the power to subvert the sovereignty of Sarawak and its protective municipal laws; namely Order in Council 1954, Land Code 1958, OMO58, and Supplementary Deed 1965.
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Dateline 2018-07-10, FMT:
The Sarawak state assembly passed the Oil Mining (Amendment) Bill 2018 today aimed at updating several provisions in the Oil Mining Ordinance (OMO).
It was also to bring the ordinance in line with current practices and operations in the oil and gas industry’s upstream sector.
In tabling it, Sarawak Deputy Chief Minister Awang Tengah Ali Hasan said with the amendment, the state would be able to strengthen regulatory control over the exploration of petroleum and mining activities in the state.
He said when the federal Parliament passed the Continental Shelf Act 1996 and Petroleum Mining Act 1966 to regulate the mining of petroleum in the continental shelf, these acts were not extended to Sarawak.
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Dateline 2018-07-08, The Sun Daily:
Industry players believe that the turf war of sorts between Petroliam Nasional Bhd (Petronas) and the Sarawak state government is likely to affect new investments into the state’s oil and gas sector more than existing players in the market.
A senior analyst who spoke to SunBiz on condition of anonymity said those who are already operating in the state might not see much of an impact at this juncture, but it is best for fresh entrants to take on a wait-and-see approach as the matter unfolds.
Kenanga Research in its note to investors last Thursday said it expects the ongoing tussle between Petronas and state-owned Petroleum Sarawak Bhd (Petros) to continue with anticipation of Petronas pursuing a court case, although this might delay the awards of Production Sharing Contracts (PSC) in the state.
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Dateline 2108-07-05, FMT:
The federal government has been urged to deliver on an election campaign promise of granting a 20% oil royalty to Sabah and Sarawak, even as the national petroleum company, Petronas, insists that it has legal rights to oil and gas resources in the whole country.
Johan Ariffin, a former deputy director of Sabah Foundation, said the issue of the ownership would take time to resolve.
However, the Pakatan Harapan campaign promise of 20% oil royalty could be carried out “without much difficulty and should be done first” before the dispute over ownership was resolved, he said.
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Dateline 2018-07-04, Malay Mail:
he Sarawak Oil Mining Ordinance 1958 (SOMO) seeks to bar any company or person from building, erecting and decommissioning any mining structure within Sarawak’s territorial boundary, unless authorised in writing by the State Minerals Mining Authority.
A maximum penalty of RM250,000 or an imprisonment of three years or both upon conviction await any person or company who fails to comply with the provision.
This is one of the provisions to be included in the Sarawak Oil Mining Ordinance 1958, which will be tabled for amendments at next week’s sitting of the Sarawak State Assembly.
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Dateline 2018-07-01, Malay Mail:
The Sarawak government today began exercising its powers over the oil and gas industry, but said it will give industry players until the end of 2019 for full compliance.
A statement issued by the Chief Minister’s Office said oil and gas industry players are required to comply with the Gas Distribution Ordinance 2016, Oil Mining Ordinance (OMO) 1958 and Sarawak Land Code (SLC) 1958.
The Gas Distribution Ordinance, which comes into force today, requires all activities related to gas distribution or within the distribution system for supply and delivery to be licensed by the state through the director of Gas Distribution.
These activities include the import of liquefied natural gas into Sarawak, regasification, treatment and the separation and processing.
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Wata - Malaysian Oil and Gas Engineer 