00:00A former senior treasury official has urged Malaysians not to question Petronas' right
00:07to oil and gas resources in Sarawak amid reports that negotiations between the national oil
00:12company and petroleum Sarawak Berhad remain deadlocked.
00:16Nik Azmi Nikdaut told FMT that Malaysia had no control over its oil prior to the coming
00:21into force of the Petroleum Development Act 1974 as these rights had been placed by the
00:26former colonial powers in the hands of foreign corporations indefinitely.
00:31He also refuted claims that Sarawak was not consulted on the PDA, saying the legislation
00:36was drafted by Tunku Razali Hamza with strong support from then-Sarawak Chief Minister Abdul
00:41Rahman Yaqub.
00:42Nik Azmi said the two lawmakers were instrumental in the creation of Petronas and the nationalization
00:48of all oil resources, and that a vesting deed was signed on Sarawak's behalf by its then-State
00:53Secretary Bujang Nor.
00:56Nik Azmi also dismissed claims that the PDA was not approved by the Sarawak State Assembly,
01:01saying it was passed with a two-thirds majority.
01:04He said that there was no legal impediment to Petros being named gas aggregator, saying
01:08the Prime Minister was authorized under Section 6 of the PDA to make the appointment.
01:13However, he said Petros would be obliged to manage all infrastructure independently and
01:18cannot look to Petronas for a bailout.
01:21Nik Azmi added that while the PDA grants Petronas control of all upstream oil and gas activities,
01:26states like Sarawak can become partners through joint development agreements.
01:30Meanwhile, a lawyer with experience in oil and gas litigation dismissed suggestions that
01:35the PDA was invalid, saying the courts have never ruled it to be unconstitutional.
01:40He also refuted claims that the PDA was an emergency law, saying Parliament was fully
01:45operational when the act was passed.
01:48The lawyer, who asked to remain anonymous, also told FMT that Sarawak had no right to
01:53oil and gas under the federal constitution.
01:56He also said Sarawak's acceptance of oil royalties over the years contradicts its position
02:01that the state's oil mining ordinance in 1958 overrides the PDA.
02:07Dhanushar Jereza, FMT.
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