00:00Experts are weighing in on the still-unresolved Petronas Petroleum-Sarawak-Berhart gas deal,
00:07warning it could have wide-reaching effects on Malaysia's island gas industry and the economy.
00:13Jamil Ghani, a former analyst with the Malaysia Petroleum Resources Corporation,
00:18said that while Prime Minister Anwar Ibrahim assured Parliament on February 17
00:22that existing Petronas contracts would remain valid,
00:25the Sarawak government added a caveat the very next day.
00:29Petronas contracts must not undermine Petros' role or contradict the state's distribution of Gas Ordinance 2016.
00:36Jamil said this shift introduces major operational and financial risks for Petronas,
00:41whose long-term contracts with countries like Japan, South Korea and Taiwan
00:46are priced based on fixed assumptions about gas volumes and margins.
00:50He said involving Petros as a middleman could drive up costs,
00:54forcing renegotiations and threatening profitability,
00:57especially since Petronas must now supply Sarawak with 1.2 billion cubic feet of gas daily,
01:03nearly triple the current amount.
01:05Jamil added that over 3,000 local oil and gas services companies, 90% reliant on Petronas,
01:11could suffer, and weakening Petronas would reduce government dividends
01:15and shake up industries dependent on cheap energy.
01:18Meanwhile, University of Tasmania's James Chin said the deal could strengthen ties
01:23between the federal government and the state's ruling coalition, Gabungan Parti Sarawak,
01:27especially after past resistance under Dr. Mahathir Mohamad's administration.
01:31However, Sunmi University's Shakila Yacob warned that the dispute could be exploited by China,
01:37who's asserting its presence near Sarawak
01:39and stressed the importance of balancing state autonomy with national cohesion.
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