00:00A former senator has cautioned politicians against airing simple narratives when discussing
00:06the right to oil and gas resources off Sarawak's coast.
00:11Sarawak Perikatan Nasional Chairman Jazir Alkaf Abdillah Sufian said these narratives
00:15tend to undervalue Petronas' contributions and may disrupt the relationship between the
00:20federal and state governments.
00:23He told FMT, Petroleum Sarawak Berhad cannot afford to sustain itself without Petronas
00:28as it currently lacks the necessary capacity and expertise.
00:33Jaziri also said Sarawak must balance its desire to reclaim its resources with playing
00:38its part in building a stronger nation, reiterating that the state lacks the talent and skills
00:43to stand alone.
00:44Meanwhile, a lawyer said it was too simplistic to attribute Sarawak's underdevelopment
00:50to being undercompensated by Petronas.
00:53Sarawak also has issues relating to the lack of transparency, financial mismanagement and
00:58corruption, the lawyer said.
01:01He said the production-sharing model guaranteed under the Petroleum Development Act 1974 is
01:06more equitable compared to the concession model under the Oil Mining Ordinance 1958.
01:13Speaking on condition of anonymity, the lawyer pointed out that the PDA brings the country
01:17better returns.
01:19On the other hand, the OMO allocates all resources to the concessionaire, with the
01:23state paying a fixed sum as royalty.
01:27Various Sarawak leaders have lately disputed Petronas' ownership of hydrocarbon resources
01:31in and around the state, insisting that the OMO should either override or, at the very
01:36least, be read alongside the PDA.
01:40Dhanesh Rajareza, FMT News.
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