Deputy Minister Challenges Dr. Mahathir's Sarawak Oil Production Claims
MIRI (Nov 15): Datuk Gerawat Gala has issued a rebuttal to Dr. Mahathir's recent statements on oil and gas, arguing that they demonstrate a fundamental misunderstanding of Sarawak's historical role in the formation of Malaysia. The Deputy Minister in the Sarawak Premier's Department refutes Dr. Mahathir's assertion that oil production in Sarawak only began after the state joined Malaysia.
Gerawat highlights a crucial historical fact often overlooked: Sarawak, Sabah, Singapore, and Malaya collectively formed Malaysia. Without Sarawak and Sabah, Malaysia would not exist. He emphasizes that oil was discovered in Sarawak as early as 1910, well before Malaysia's establishment in 1963.
The Deputy Minister, a former corporate lawyer in the oil and gas industry, points out that Sarawak Shell Bhd secured concessions from the Sarawak government to explore and produce oil and gas under the Oil Mining Ordinance 1958, predating the Petroleum Development Act (PDA) and Petronas. Sarawak had full control over its oil and gas resources, receiving a 10% royalty on onshore and offshore production before the PDA.
Gerawat argues that the federal government's enactment of the PDA granted exclusive rights to Petronas, effectively stripping Sarawak and Sabah of their oil and gas rights. The federal government now pays only a 5% royalty to both states, a significant reduction from Sarawak's previous 10%.
While acknowledging Dr. Mahathir's point about federal exploitation, Gerawat emphasizes Sarawak's reasonable request for a fairer share of oil and gas revenue. The state lags behind Peninsular Malaysia in infrastructure, particularly in rural areas. Ongoing debates over Petros' appointment as Sarawak's sole gas aggregator have, according to Gerawat, diverted attention from the core issue of revenue distribution.
Gerawat challenges Petronas' resistance, noting its legal challenges to Sarawak's constitutional rights and its opposition to Petros' appointment as the sole gas aggregator. He concludes that Petronas' actions demonstrate a lack of good faith and a reluctance to acknowledge Sarawak's legitimate aspirations for equitable revenue sharing.
