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Suit against Sarawak may affect federal-state ties, Petronas told

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GPS leader Idris Buang says there could be wider consequences on the economy and possible political strife.

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Petronas has a monopoly over extraction of oil and gas but the Sarawak government has sought greater control over the state’s natural resources. (Petronas pic)

PETALING JAYA:
A Petronas suit against Sarawak over the state’s move for increased control over oil and gas trading could strain federal-state ties and lead to political divisions, a leader of Gabungan Parti Sarawak said today.

Idris Buang, information chief of GPS lynchpin Parti Pesaka Bumiputera Bersatu, said legal action by Petronas could threaten the economy, strain federal-state ties and also lead to political rifts.

He said ties between the federal government and Sarawak were at their best since Malaysia’s formation and should not be disrupted, Dayak Daily reported.

“We must protect this strong bond as long as we are Malaysians striving for greater progress. The parties involved must honour this by seriously working to fulfil the terms of MA63 (the Malaysia Agreement 1963) and respecting the Sarawak constitution,” he was quoted as saying.

He also pointed out that Prime Minister Anwar Ibrahim had repeatedly affirmed the importance of fulfilling MA63.

“Petronas, as a national corporation, must look beyond mere business interests and prioritise the nation’s socio-political stability,” said Idris, who is also deputy speaker of the Sarawak assembly.

On Saturday, Channel News Asia quoted anonymous government officials as saying Petronas was mulling legal action to defend its monopoly over the country’s petroleum and gas resources.

The company is said to be filing an injunction in the coming days to head off any confrontation between the federal government and Sarawak, with the latter pushing for increased control over trading and extraction of oil and gas and other related products.

The report also quoted lawyers as saying that unless the state government decides to resume negotiations with Petronas, the dispute could escalate into a full-blown court battle.

However, earlier today, Sarawak premier Abang Johari Openg said talks with Petronas were continuing and are set to conclude before Oct 1. He added that Petroleum Sarawak Bhd, or Petros, will collaborate with Petronas in the development of both upstream and downstream activities.

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