Petroleum Sarawak

Sarawak's and Sabah's oil and gas rights were lost to the Federal Government after the 13 May Incident. When the Federal Government made a Proclamation of Emergency in response to the unrest, it unilaterally limited the territorial waters of the Borneo states to three nautical miles. The ownership of the remaining territorial waters were transferred to the Federal Government.{{cite news|last1=Sendou Ringgit|first1=Danielle|title=How the 13 May race riots affected Sabah and Sarawak|url=http://seeds.theborneopost.com/2016/01/08/how-the-13-may-race-riots-affected-sabah-and-sarawak/|accessdate=10 May 2016|publisher=The Borneo Post|date=8 January 2016|archiveurl=https://web.archive.org/web/20160510112239/http://seeds.theborneopost.com/2016/01/08/how-the-13-may-race-riots-affected-sabah-and-sarawak/|archivedate=10 May 2016|quote=All of these safeguards over territory were suspended on May 13, 1969, ... Parliament getting suspended and the state of emergency was implemented nationwide ... Through the new ordinances and gazettes, Zainnal said that the continental shelf of both Borneo states were limited to just three nautical miles.}}{{cite book|last1=Lukas|first1=Strumann|title=Money Logging: On the Trail of the Asian Timber Mafia|date=21 October 2014|publisher=Schwabe AG|isbn=9783905252705|pages=102–103|url=https://books.google.com/books?id=018aCgAAQBAJ&pg=PA103 |accessdate=22 September 2015|quote= When negotiations failed, Kuala Lumpur seized the disputed parts of the continental shelf invoking 1969 emergency measures.(pages 102 and 103), When the question came out again in the early 1970s, Taib, as a minister of primary industries, was the responsible member of the federal government, and his uncle was chief minister of Sarawak. The conflict was sorted out as an internal family affair. (page 103)}} In 1974, the Federal Government transferred its territorial waters ownership to Petroliam Nasional Berhad (PETRONAS) through the enactment of the [https://web.archive.org/web/20190818071534/https://www.agc.gov.my/agcportal/uploads/files/Publications/LOM/EN/Act%20144%20-%20Petroleum%20Development%20Act%201974.pdf Petroleum Development Act 1974]. The then chief minister of Sarawak, Abdul Rahman Ya'kub was one of the signatories of this agreement. Among others, the act allowed PETRONAS to regulate the oil and gas industry in Malaysia, and explore mineral resources in both the states. Petronas also gain control over the oil and gas reserves in Sarawak. The revenues from oil and gas will be divided among oil-producing states (5 percent), federal government (5 percent), producer company (41 percent), and Petronas (49 percent).{{cite book|url=https://books.google.com/books?id=nhAU_JcFNZ0C&pg=PA93|title=Domination and Contestation: Muslim Bumiputera Politics in Sarawak|last1=Faisal|first1=S Hazis|date=2012|publisher=Institute of Southeast Asian Studies|isbn=978-981-4311-58-8|page=93|accessdate=11 December 2015}}

In 2011, the 1969 Proclamation of Emergency (along with the 1966 & 1977 Proclamations of Emergency) proclamation was lifted which nullified Emergency Ordinances and measures authorised by these proclamations, including the three nautical miles limitation.{{Cite news|url=http://www.freemalaysiatoday.com/category/nation/2011/11/24/emergency-proclamations-lifted-eo-void/|title=Emergency laws lifted, EO void|date=2011-11-24|work=Free Malaysia Today|access-date=2018-05-01|language=en-US}} The [http://www.federalgazette.agc.gov.my/outputaktap/20120622_750_BI_Act%20750%20BI.pdf Territorial Sea Act 2012] was introduced to limit the territorial waters to three nautical miles limit through an Act of Parliament.{{cite news|last1=Ajamain|first1=Zainnal|title=Petronas not 'legal owner' of Sabah, S'wak waters|url=http://www.fmtborneoplus.com/category/nation/2014/04/07/petronas-not-legal-owner-of-sabah-swak-waters/|accessdate=10 May 2016|publisher=Free Malaysia Today|date=7 April 2014|archiveurl=https://web.archive.org/web/20140408202914/http://www.fmtborneoplus.com/category/nation/2014/04/07/petronas-not-legal-owner-of-sabah-swak-waters/|archivedate=8 April 2014|quote=As at May 24, 2012 Petronas is no longer the “legal owner” of the Sabah and Sarawak territorial waters. The Federal Government had tried to rectify their mistakes by tabling Act 750 under the Malaysia Territorial Sea Act 2012, and passing in parliament in June 2012.}} Zainnal Ajamain, a political analyst, claimed that the payment of oil royalty to Sarawak is limited to 10 percent according to the Federal Constitution.{{cite news|last1=Davidson |first1=Desmond |title=Sabah, Sarawak only entitled to 10% oil royalty under constitution, says activist |url=http://www.themalaysianinsider.com/malaysia/article/sabah-sarawak-only-entitled-to-10-oil-royalty-under-constitution-says-activ |accessdate=20 May 2016 |publisher=The Malaysian Insider |date=29 October 2015 |url-status=unfit |archiveurl=https://web.archive.org/web/20151030141115/http://www.themalaysianinsider.com/malaysia/article/sabah-sarawak-only-entitled-to-10-oil-royalty-under-constitution-says-activ |archivedate=30 October 2015 }} However, it was argued that the article stipulated in the Federal Constitution only deals with the eligibility of the state of charging duty exports if the state oil royalty is less than 10 percent.{{cite news|last1=Hisyam Aliman|first1=Khairie|title=Why Sarawak really can ask for 20pc royalties|url=http://www.themalaymailonline.com/opinion/khairie-hisyam-aliman/article/why-sarawak-really-can-ask-for-20pc-royalties|accessdate=20 May 2016|publisher=The Malay Mail|date=31 October 2015|archiveurl=https://web.archive.org/web/20151212202457/http://www.themalaymailonline.com/opinion/khairie-hisyam-aliman/article/why-sarawak-really-can-ask-for-20pc-royalties|archivedate=12 December 2015}}{{Cite wikisource |title= Agreement relating to Malaysia between United Kingdom of Great Britain and Northern Ireland, Federation of Malaya, North Borneo, Sarawak and Singapore - Annex A - item 46(b) |wslink= Agreement relating to Malaysia between United Kingdom of Great Britain and Northern Ireland, Federation of Malaya, North Borneo, Sarawak and Singapore/Annex A | year = 1962 | page=30}}{{Cite wikisource |title= Constitution of Malaysia - Article 112C |wslink= Constitution_of_Malaysia#Article_112c | year = 1963}}

In 2008, the federal government of Malaysia announced that it had no plans of revising oil royalty rates for Sabah and Sarawak.{{cite news|title=Petronas royalty rates to stay|url=https://www.thestar.com.my/news/nation/2008/05/14/petronas-royalty-rates-to-stay/|accessdate=2 May 2018|work=The Star (Malaysia)|date=14 May 2008|archiveurl=https://web.archive.org/web/20180502194056/https://www.thestar.com.my/news/nation/2008/05/14/petronas-royalty-rates-to-stay/|archivedate=2 May 2018}} In 2012, chief minister of Sarawak Abdul Taib Mahmud started a private negotiation with federal government regarding the Sarawak oil royalty.{{cite news|last1=Joseph|first1=Tawie|title=Why re-negotiate oil deal in private?|url=http://www.freemalaysiatoday.com/category/nation/2012/08/27/why-re-negotiate-oil-deal-in-private/|accessdate=2 May 2018|publisher=Free Malaysia Today|date=27 August 2012|archiveurl=https://web.archive.org/web/20160419181309/http://www.freemalaysiatoday.com/category/nation/2012/08/27/why-re-negotiate-oil-deal-in-private/|archivedate=19 April 2016}} In 2014, Sarawak State Legislative Assembly passed a motion to ask for 20% oil royalty from the federal government.{{cite news|last1=Khairie|first1=Hisyam Aliman|title=Cover Story: Why Sarawak questions the Petroleum Development Act|url=http://www.theedgemarkets.com/article/cover-story-why-sarawak-questions-petroleum-development-act|accessdate=2 May 2018|publisher=The Edge Weekly (Malaysia)|date=8 February 2018|archiveurl=https://web.archive.org/web/20180502194730/http://www.theedgemarkets.com/article/cover-story-why-sarawak-questions-petroleum-development-act|archivedate=2 May 2018}} Since then, subsequent chief ministers of Sarawak had been trying to gain more autonomy for oil and gas rights in Sarawak. In May 2015, Petronas agreed to supply cheaper natural gas to Sarawak Energy for power generation.{{cite news|title=Oil royalty decision lies with fed govt - chief minister|url=https://www.pressreader.com/malaysia/the-borneo-post/20150430/281539404509671|accessdate=3 May 2018|publisher=The Borneo Post|date=30 April 2015}} In December 2015, Sarawak state assembly passed another motion that rejects the 2012 Territorial Sea Act; because according to Article 2 of the Constitution of Malaysia, the federal government of Malaysia has no rights to change the state boundaries without the consent of the respective state governments.{{cite news|last1=Phyllis|first1=Wong|title=Territorial Sea Act null and void?|url=http://www.theborneopost.com/2016/10/30/territorial-sea-act-null-and-void/|accessdate=5 May 2018|publisher=The Borneo Post|date=30 October 2016|archiveurl=https://web.archive.org/web/20170830175117/http://www.theborneopost.com/2016/10/30/territorial-sea-act-null-and-void/|archivedate=30 August 2017}}

In August 2016, following a retrenchment exercise by Petronas on Sarawakian workers, the Sarawak chief minister Adenan Satem had threatened to freeze the work permits of non-Sarawakians Petronas workers in the state.{{cite news|last1=Richard|first1=T.W|title=Adenan: We'll scrap permits if Petronas doesn't cooperate|url=http://www.freemalaysiatoday.com/category/nation/2016/08/12/adenan-well-scrap-permits-if-petronas-doesnt-cooperate/|accessdate=3 May 2018|publisher=Free Malaysia Today|date=12 August 2016|archiveurl=https://web.archive.org/web/20180503122022/http://www.freemalaysiatoday.com/category/nation/2016/08/12/adenan-well-scrap-permits-if-petronas-doesnt-cooperate/|archivedate=3 May 2018}} However, soon after that, the issue was resolved after Petronas agreed to offer more jobs for the Sarawak people.{{cite news|last1=Esther|first1=Landau|title=Sarawak-Petronas impasse over, 7 steps to resolve woes, says Adenan|url=https://www.nst.com.my/news/2016/08/168653/sarawak-petronas-impasse-over-7-steps-resolve-woes-says-adenan|accessdate=3 May 2018|publisher=New Straits Times|date=27 August 2016|archiveurl=https://web.archive.org/web/20161104152053/http://www.nst.com.my/news/2016/08/168653/sarawak-petronas-impasse-over-7-steps-resolve-woes-says-adenan|archivedate=4 November 2016|url-status=live}} As of May 2017, Sarawak was still negotiating with Petronas for an increase in oil and petroleum royalty to 40%.{{cite news |title=Sarawak still negotiating with Petronas on increase in oil royalty |url=http://www.thesundaily.my/news/2017/05/22/sarawak-still-negotiating-petronas-increase-oil-royalty |accessdate=7 June 2018 |publisher=The Sun Daily |date=22 May 2017 |archiveurl=https://web.archive.org/web/20170522125151/http://www.thesundaily.my/news/2017/05/22/sarawak-still-negotiating-petronas-increase-oil-royalty |archivedate=22 May 2017}}

In June 2017, the Chief Minister of Sarawak, Abang Johari Openg, announced that Sarawak will establish a state-owned oil and gas exploration company.{{Cite news|url=https://www.bharian.com.my/node/291923|title=Sarawak tubuh syarikat minyak sendiri|date=2017-06-11|work=BH Online|access-date=2018-01-18|language=ms}} On 4 July 2017, Abang Johari announced{{cite news|url=https://www.malaysiakini.com/news/387409 |title= S'wak forming O&G firm to do own exploration | work=MalaysiaKini |date=4 July 2017}} that the petroleum company would be 100 percent owned by Sarawak and will work with Petronas on an equal basis.{{cite web |url=http://www.themalaymailonline.com/malaysia/article/cm-sarawak-oil-company-equal-with-petronas#61Tvq8FjKbFbYV3C.97 |title=CM: Sarawak oil company equal with Petronas |last=Tawie |first=Sulok |date=9 August 2017 |website=Malay Mail Online |publisher= |access-date= 30 November 2017 |quote=}} It was eventually formed on 7 August 2017.{{Cite web|url=http://www.thesundaily.my/news/2017/08/07/petros-officially-formed-says-sarawak-cm|title=Petros officially formed, says Sarawak CM|date=7 August 2017|website=www.thesundaily.my|language=en|access-date=2018-01-18}} The Sarawak government aimed to have Petros in operation by the first quarter of 2018{{Cite web|url=https://www.thestar.com.my/business/business-news/2017/09/05/sarawak-oil-play/|title=Sarawak to set up own oil company amid ongoing talks with Petronas - Business News {{!}} The Star Online|date=5 September 2017|website=The Star Online|access-date=2018-01-18}} and become an active player in the oil & gas industry by 2020.{{Cite news|url=http://www.theborneopost.com/2018/01/15/petros-up-and-running-by-2020/|title=Petros up and running by 2020|date=2018-01-14|work=Borneo Post Online|access-date=2018-01-18|language=en-US}} Sarawak government then sent a legal team to the United Kingdom to search for additional supporting documents regarding the rights of Sarawak in the Malaysian agreement. Among them are Sarawak (Alteration of Boundaries) Order 1954 by the Queen in Council, which stated that Sarawak boundary covers way beyond the three nautical miles.{{cite news|last1=Jonathan|first1=Chia|title=Successful mission|url=http://www.theborneopost.com/2017/08/09/successful-mission/|accessdate=5 May 2018|publisher=The Borneo Post|date=9 August 2017|archiveurl=https://web.archive.org/web/20171010064701/http://www.theborneopost.com/2017/08/09/successful-mission/|archivedate=10 October 2017|url-status=live}} In November 2017, Sarawak has formed a special task force to negotiate with Petronas regarding the return of Sarawak oil and gas rights. Sarawak was unwilling to resort to court action to nullify the Territorial Sea Act and Petronas dominance on Sarawak waters so as to preserve the good relationship between the federal and state government.{{cite news |last1=Sharon |first1=Ling |title=Sarawak Assembly approves high-level task force to discuss issues under Malaysia Agreement |url=https://www.thestar.com.my/news/nation/2017/11/09/sarawak-assembly-approves-high-level-task-force-to-discuss-issues-under-malaysia-agreement/ |accessdate=7 June 2018 |publisher=The Sun Daily |date=9 November 2017 |archiveurl=https://web.archive.org/web/20171109143520/https://www.thestar.com.my/news/nation/2017/11/09/sarawak-assembly-approves-high-level-task-force-to-discuss-issues-under-malaysia-agreement/ |archivedate=9 November 2017}}

In February 2018, Abang Johari questioned the validity of the 1974 Petroleum Development Act. This was because the Act was passed during the Emergency Proclamation period from 1969 to 2011. The Emergency Proclamation was abolished in 2011. This raises questions that whether the Petroleum Development Act would cease to become effective after 2011. He also stated that the Petroleum Development Act does not exclude laws such as Sarawak Oil Mining Ordinance 1958 which stated that only Sarawak has the right to issue mining licenses for oil production. In April 2018, the chief minister also announced that under Oil Mining Ordinance 1958 and Gas Distribution Ordinance 2016, Petronas would need to apply mining license from Petros to operate in Sarawak waters by 1 July 2018.{{cite news|last1=Ogilvy|first1=Geryl|title=Abang Johari: Oil and gas companies must get relevant permits by July 1|url=https://www.thestar.com.my/news/nation/2018/04/19/abang-johari-oil-and-gas-companies-must-get-relevant-permits-by-july-1/|accessdate=30 April 2018|work=The Star (Malaysia)|date=19 April 2018|archiveurl=https://web.archive.org/web/20180419102544/https://www.thestar.com.my/news/nation/2018/04/19/abang-johari-oil-and-gas-companies-must-get-relevant-permits-by-july-1/|archivedate=19 April 2018}} Abang Johari also claimed that under the Item 2(c) of the State List, Ninth Schedule of the Federal Constitution, Petros is able to exercise its rights on Sarawak waters. Petronas had welcomed Petros into the oil and gas mining scene as long as Petros acted within the framework of Malaysian Petroleum Development Act, 1974.{{cite news|last1=Churchill|first1=Edward|title=Petronas welcomes Petros|url=http://www.theborneopost.com/2018/03/08/petronas-welcomes-petros/|accessdate=30 April 2018|publisher=The Borneo Post|date=8 March 2018|archiveurl=https://web.archive.org/web/20180308034211/https://www.theborneopost.com/2018/03/08/petronas-welcomes-petros/|archivedate=8 March 2018}} However, the opposition politicians in Sarawak cast doubts on whether Sarawak has truly regained its oil and gas rights without making any amendments to the existing laws in the country.{{cite news |last1=Desmond |first1=Davidson |title=Not true that Sarawak has reclaimed oil and gas rights, says opposition |url=https://www.themalaysianinsight.com/s/41638/ |accessdate=5 June 2018 |publisher=The Malaysian Insight |date=7 March 2018 |archiveurl=https://web.archive.org/web/20180605225959/https://www.themalaysianinsight.com/s/41638/ |archivedate=5 June 2018}} In April 2018, the opposition coalition, Pakatan Harapan offered a 20% oil royalty deal for Sarawak government if the former wins the federal power in 2018 Malaysian general election,{{cite news |title=Pakatan offers 'New Deal Agreement' to state BN |url=http://www.theborneopost.com/2018/04/10/pakatan-offers-new-deal-agreement-to-state-bn/ |accessdate=7 June 2018 |publisher=The Borneo Post |date=10 April 2018 |archiveurl=https://web.archive.org/web/20180607031101/http://www.theborneopost.com/2018/04/10/pakatan-offers-new-deal-agreement-to-state-bn/ |archivedate=7 June 2018}} however, Sarawak refused to sign it because it has no legal standing.{{cite news |title=PH Sarawak's 'New Deal Agreement' no force of law — Abdullah |url=http://www.theborneopost.com/2018/05/19/ph-sarawaks-new-deal-agreement-no-force-of-law-abdullah/ |accessdate=7 June 2018 |publisher=The Borneo Post |date=19 May 2018 |archiveurl=https://web.archive.org/web/20180521041914/http://www.theborneopost.com/2018/05/19/ph-sarawaks-new-deal-agreement-no-force-of-law-abdullah/ |archivedate=21 May 2018}} Pakatan Harapan also proposed the setting up of "Sarawak Petrogas" to jointly manage oil and gas resources together with Petronas; while claiming that Petros is only a "subcontractor in logistics" and failed to perform its duty as an oil and gas company.{{cite news |title=SUPP trying to cover-up failures, says opposition leader |url=https://dayakdaily.com/supp-trying-to-cover-up-failure-says-opposition-leader/ |access-date=2 June 2022 |publisher=Dayak Daily |date=20 February 2018 |archive-url=https://archive.today/20220618134802/https://dayakdaily.com/supp-trying-to-cover-up-failure-says-opposition-leader/ |archive-date=18 June 2022}}

After 2018 Malaysian general election, Malaysian federal government changed hands to Pakatan Harapan. On 22 May 2018, Petronas responded to Sarawak state attorney-general that it disagrees that Petronas need to apply license from Petros to operate in Sarawak waters.{{cite news |last1=Intan Farhana |first1=Zainul |title=The Petronas-Sarawak oil intrigue |url=https://www.thestar.com.my/business/business-news/2018/06/09/the-petronassarawak-oil-intrigue/ |accessdate=10 June 2018 |work=The Star (Malaysia) |date=9 June 2018 |archiveurl=https://web.archive.org/web/20180610003541/https://www.thestar.com.my/business/business-news/2018/06/09/the-petronassarawak-oil-intrigue/ |archivedate=10 June 2018}} On 4 June 2018, Petronas filed a suit in the Federal Court of Malaysia in order to assert its position as the exclusive owner of Malaysian oil resources (including Sarawak) and the 1974 Petroleum Development Act is still valid.{{cite news |last1=Raynore |first1=Mering |title=See you in court, Sarawak government tells Petronas |url=https://www.malaymail.com/s/1638321/see-you-in-court-sarawak-government-tells-petronas |accessdate=4 June 2018 |publisher=The Malay Mail |date=4 June 2018 |archiveurl=https://web.archive.org/web/20180604152133/https://www.malaymail.com/s/1638321/see-you-in-court-sarawak-government-tells-petronas |archivedate=4 June 2018}} On 22 June 2018, the federal court of Malaysia denied Petronas application to start legal proceedings against Sarawak because the case is not within the jurisdiction of the federal court.{{cite news |title=Petronas loses bid to challenge Sarawak govt |url=https://www.thestar.com.my/news/nation/2018/06/23/petronas-loses-bid-to-challenge-sarawak-govt/ |accessdate=24 June 2018 |work=The Star (Malaysia) |date=23 June 2018 |archiveurl=https://web.archive.org/web/20180623022311/https://www.thestar.com.my/news/nation/2018/06/23/petronas-loses-bid-to-challenge-sarawak-govt/ |archivedate=23 June 2018}} On 10 July 2018, Sarawak state assembly passed the Oil Mining (Amendment) Bill (2018) in order to regulate oil and gas activities in the state. All oil and gas companies operating in Sarawak waters would be given grace period until the end of 2019 to comply with Oil Mining Ordinance (OMO) 1958.{{cite news |last1=Jacob |first1=Achoi |title=State Legislative Assembly passes Oil Mining (Amendment) Bill, 2018 |url=http://www.theborneopost.com/2018/07/10/state-legislative-assembly-passes-oil-mining-amendment-bill-2018/ |accessdate=12 July 2018 |publisher=The Borneo Post |date=10 July 2018 |archiveurl=https://web.archive.org/web/20180711042914/http://www.theborneopost.com/2018/07/10/state-legislative-assembly-passes-oil-mining-amendment-bill-2018/ |archivedate=11 July 2018}}

Since 1 January 2019, Sarawak enforced 5% sales on all petroleum products.{{cite news |last1=Sharon |first1=Ling |title=Sarawak to charge 5% sales tax on petroleum products from next year |url=https://www.thestar.com.my/news/nation/2018/11/05/sarawak-to-charge-5-sales-tax-on-petroleum-products-from-next-year |accessdate=29 September 2019 |publisher=5 November 2018 |archiveurl=https://web.archive.org/web/20181106165330/https://www.thestar.com.my/news/nation/2018/11/05/sarawak-to-charge-5-sales-tax-on-petroleum-products-from-next-year/ |archivedate=6 November 2018}} Initially, Petronas was given dateline until end of September 2019 to pay the sales tax.{{cite web |last1=Lim |first1=How Pim |title=Petronas given to end of September to pay 5 pct sales tax on petroleum products |url=https://www.theborneopost.com/2019/09/13/petronas-given-to-end-of-september-to-pay-5-pct-sales-tax-on-petroleum-products/ |publisher=The Borneo Post |accessdate=29 September 2019 |archiveurl=https://web.archive.org/web/20190916051624/https://www.theborneopost.com/2019/09/13/petronas-given-to-end-of-september-to-pay-5-pct-sales-tax-on-petroleum-products/ |archivedate=16 September 2019}} After that, Petronas was given until end of October 2019 to pay the sales tax.{{cite news |last1=Sam |first1=Chua |title=Sarawak govt will sue Petronas if it doesn't pay 5pct sales tax by October, says Abdul Karim |url=https://www.theborneopost.com/2019/09/28/sarawak-govt-will-sue-petronas-if-it-doesnt-pay-5pct-sales-tax-by-october-says-abdul-karim/ |accessdate=29 September 2019 |publisher=The Borneo Post |date=28 September 2019 |archiveurl=https://web.archive.org/web/20190928113329/https://www.theborneopost.com/2019/09/28/sarawak-govt-will-sue-petronas-if-it-doesnt-pay-5pct-sales-tax-by-october-says-abdul-karim/ |archivedate=28 September 2019}} In September 2019, prime minister Mahathir stated that payment of 20% oil royalty is not possible for Sabah and Sarawak because it may compromise financial status of Petronas.{{cite news |title=Dr M: 20pct oil royalty for Sarawak, Sabah 'really not workable' |url=https://www.theborneopost.com/2019/09/27/dr-m-20pct-oil-royalty-for-sarawak-sabah-really-not-workable/ |accessdate=29 September 2019 |publisher=27 September 2019 |archiveurl=https://web.archive.org/web/20190928113329/https://www.theborneopost.com/2019/09/27/dr-m-20pct-oil-royalty-for-sarawak-sabah-really-not-workable/ |archivedate=28 September 2019}} On 21 November 2019, the Sarawak government filed a suit against Petronas for not paying the 5% sales tax.{{cite news |last1=Sulok |first1=Tawie |title=Sarawak files lawsuit against Petronas in bid to recover unpaid sales tax |url=https://www.malaymail.com/news/malaysia/2019/11/21/sarawak-files-lawsuit-against-petronas-in-bid-to-recover-unpaid-sales-tax/1812006 |accessdate=21 November 2019 |publisher=The Malay Mail |date=21 November 2019 |archiveurl=https://web.archive.org/web/20191121120558/https://www.malaymail.com/news/malaysia/2019/11/21/sarawak-files-lawsuit-against-petronas-in-bid-to-recover-unpaid-sales-tax/1812006 |archivedate=21 November 2019}}

In February 2020, Petros took full control of natural gas supply, sales, and distribution network in the state from Petronas.{{cite news |last1=Larissa |first1=Lumandan |title=Petros takes over control of Sarawak gas from Petronas |url=https://www.freemalaysiatoday.com/category/nation/2020/02/12/petros-takes-over-control-of-sarawak-gas-from-petronas/ |accessdate=13 February 2020 |publisher=Free Malaysia Today |date=12 February 2020 |archiveurl=https://web.archive.org/web/20200213120750/https://www.freemalaysiatoday.com/category/nation/2020/02/12/petros-takes-over-control-of-sarawak-gas-from-petronas/ |archivedate=13 February 2020}} In March 2020, high court ruled that Sarawak has the power to impose sales tax on Petronas.{{cite news |last1=Sulok |first1=Tawie |title=High Court rules for Sarawak in sales tax dispute with Petronas |url=https://www.malaymail.com/news/malaysia/2020/03/13/high-court-rules-for-sarawak-in-sales-tax-dispute-with-petronas/1846126 |accessdate=14 March 2020 |publisher=The Malay Mail |date=13 March 2020 |archiveurl=https://web.archive.org/web/20200314092513/https://www.malaymail.com/news/malaysia/2020/03/13/high-court-rules-for-sarawak-in-sales-tax-dispute-with-petronas/1846126 |archivedate=14 March 2020}} On 8 May 2020, Petronas agreed to pay RM 2 billion in petroleum products sales tax to Sarawak with a condition that the tax will be lowered on a staggered basis in the future. Besides, both parties also agreed that the Petroleum Development Act 1974 is valid with Petronas as the sole regulator of oil and gas industry in Malaysia.{{cite news |last1=Aziz |first1=Adam |title=Petronas to pay Sarawak RM2b sales tax for 2019, with resolution reached on future arrangements |url=https://www.theedgemarkets.com/article/petronas-pay-sarawak-rm2b-sales-tax-2019-resolution-reached-future-arrangements |accessdate=10 May 2020 |publisher=The Edge Markets |date=8 May 2020 |archiveurl=https://web.archive.org/web/20200510031918/https://www.theedgemarkets.com/article/petronas-pay-sarawak-rm2b-sales-tax-2019-resolution-reached-future-arrangements |archivedate=10 May 2020}} Wan Zulkiflee, chief executive of Petronas quit his post in June 2020, apparently dissatisfied with the outcome of the sales tax issue.{{Cite news |date=2020-06-19 |title=Exclusive: Chief of Malaysia's Petronas quit over payment to state, sources say |language=en |work=Reuters |url=https://www.reuters.com/article/us-malaysia-petronas-exclusive-idCAKBN23Q1IA |access-date=2023-09-22}} In October 2020, Sarawak government issued mining leases in Miri and Marudi to Petros for onshore oil and gas mining.{{cite news |title=Sarawak govt assumes control of oil and gas resources in Miri, Marudi |url=https://www.malaysiakini.com/news/548830 |accessdate=4 November 2020 |publisher=Malaysiakini |date=31 October 2020 |archiveurl=https://web.archive.org/web/20201101063027if_/https://www.malaysiakini.com/news/548830 |archivedate=1 November 2020}} In year 2020, Petros started to distribute liquefied petroleum gas (LPG) to 1,500 business and 2,500 households in Miri and Bintulu.{{Cite news|last=Aubrey|first=Samuel|date=2 December 2020|title=State govt mulling gas distribution system for Kuching, Kota Samarahan|work=The Borneo Post|url=https://www.theborneopost.com/2020/12/02/state-govt-mulling-gas-distribution-system-for-kuching-kota-samarahan/|url-status=live|access-date=3 December 2020|archive-url=https://web.archive.org/web/20201203075149/https://www.theborneopost.com/2020/12/02/state-govt-mulling-gas-distribution-system-for-kuching-kota-samarahan/|archive-date=3 December 2020}} In December 2020, Petros launched its own brand of LPG gas cylinder.{{Cite news|last=Ten|first=Marilyn|date=2 December 2020|title=Sarawak's Petros brand LPG launched, to be distributed next year|work=The Borneo Post|url=https://www.theborneopost.com/2020/12/02/sarawaks-petros-brand-lpg-launched-to-be-distributed-next-year/|url-status=live|access-date=3 December 2020|archive-url=https://web.archive.org/web/20201203075518/https://www.theborneopost.com/2020/12/02/sarawaks-petros-brand-lpg-launched-to-be-distributed-next-year/|archive-date=3 December 2020}} In 2023, Petronas found six new oil wells at Balingian and West Luconia geological provinces. The government of Sarawak expressed the desire to collaborate with Petronas on the exploitation of new oil wells as the Sarawak state has ownership rights on the new oil wells as far as 200 nautical miles off the coast as stipulated in the Oil Mining Ordinance 1958.{{cite news |title=Sarawak lays claim on new Petronas oil fields |url=https://www.freemalaysiatoday.com/category/nation/2023/08/20/sarawak-lays-claim-on-new-petronas-oil-fields/ |access-date=9 September 2023 |publisher=Free Malaysia Today |archive-url=https://archive.today/20230909090955/https://www.freemalaysiatoday.com/category/nation/2023/08/20/sarawak-lays-claim-on-new-petronas-oil-fields/ |archive-date=9 September 2023}} While Sarawak was finalising the takover of gas distribution rights from Petronas in 2024, former Petronas chairman Tengku Razaleigh Hamzah and an unnamed analyst stated that Petros would have difficulty to replicate Petronas' ability to negotiate a good deal when dealing with multinational corporations, which in the end would be detrimental to earnings and investments in Sarawak and Malaysia as a whole.{{cite news |last1=Khai |first1=Alina |title=Sarawak and Malaysia can’t afford escalating O&G disputes |url=https://www.freemalaysiatoday.com/category/nation/2024/11/26/sarawak-and-malaysia-cant-afford-escalating-og-disputes/ |access-date=26 November 2024 |publisher=Free Malaysia Today |date=26 November 2024 |archive-url=https://archive.today/20241126134430/https://www.freemalaysiatoday.com/category/nation/2024/11/26/sarawak-and-malaysia-cant-afford-escalating-og-disputes/ |archive-date=26 November 2024}}

On 24 August 2017, the Chief Minister's Office announced the five members of the inaugural Board of Directors:{{Cite news|url=http://www.theborneopost.com/2017/08/25/petros-names-hamid-bugo-chairman/|title=Petros names Hamid Bugo chairman|date=2017-08-25|work=BorneoPost Online {{!}} Borneo, Malaysia, Sarawak Daily News|access-date=2018-01-18|language=en-US}}{{cite web|url=http://www.cm.sarawak.gov.my/modules/web/pages.php?mod=news&sub=news_view&menu_id=&sub_id=&nid=1631&m=9&y=2017|title=Board of Directors announced|date=2 September 2017|work=Office of the Chief Minister of Sarawak}}{{cite web|url=http://www.freemalaysiatoday.com/category/nation/2017/08/25/hamid-bugo-appointed-chairman-of-petros/|title=Hamid Bugo appointed chairman of Petros|last=|first=|date=25 August 2017|website=Free Malaysia Today|publisher=MToday News|access-date=30 November 2017|quote=}}-

1. YBhg Tan Sri Datuk Amar Hamid Bugo (Chairperson) - Former Sarawak State Secretary;
2. Sharbini Suhaili - Chief Executive Officer of Sarawak Energy Berhad (SEB), who was the Vice President (Health, Safety, and Environment) of PETRONAS before joining SEB;
3. YBhg Dato Mohammad Medan Abdullah- Chief Executive Officer of Bintulu Port Holdings Bhd, who is also chairperson with several companies including Petronas Hartabina Sdn Bhd and Petrosains Sdn Bhd;
4. Heng Hock Cheng - former Managing Director of Shell Gas & Power Malaysia before his retirement in 2006; and
5. Zuraimi Sabki - State Director of Public Works.
6. YBhg Datin Josephine anak Hilary Dom

On 21 September 2017 PETROS launched an advertisement to hire a new Chief Executive Officer (CEO) for itself,{{cite news|url=http://ccdn.theborneopost.com/sites/default/files/200917/p1bqffb5fvrb4fmk1bo117mmj0d6.jpg |title= Petroleum Sarawak Berhad is inviting candidates for the position of Chief Executive Officer | work=The Borneo Post |date=21 September 2017}} after announcing earlier that month that they wanted to hire a local CEO.{{cite web |url=https://www.thestar.com.my/business/business-news/2017/09/09/search-for-petros-ceo-intensifies/ |title=Search for Petros CEO intensifies|last=Wong |first=Jack |date=9 September 2017 |website=The Star |publisher= Star Media Group |access-date=30 November 2017 |quote=}} PETROS' chairperson announced that the oil & gas company received over 40 applications from Sarawakians to fill the vacancy.{{Cite web|url=https://www.thestar.com.my/business/business-news/2017/11/08/petros-gets-40-applications-from-sarawakians-for-ceo/|title=Petros gets 40 applications from Sarawakians for CEO - Business News {{!}} The Star Online|date=8 November 2017|website=The Star Online|access-date=2018-01-18}} As at 17 January 2018, the position is yet to be filled.{{Cite web|url=https://www.themalaysianinsight.com/s/33006/|title=Petroleum Sarawak signs up for Petrotel's expertise in oil and gas {{!}} The Malaysian Insight|date=17 January 2018|website=The Malaysian Insight|language=en|access-date=2018-01-18}} On 8 March 2018, Chief Minister Abang Johari announced that Sauu Kakok will be appointed as PETROS' first CEO.{{Cite news|url=http://www.theborneopost.com/2018/03/08/saau-kakok-appointed-ceo-of-petros/|title=Saau Kakok appointed CEO of Petros|date=8 March 2018|work=Borneo Post Online|access-date=20 April 2018}}{{Cite web|url=http://www.astroawani.com/berita-malaysia/saau-kakok-dilantik-ceo-petros-169790|title=Saau Kakok dilantik CEO PETROS {{!}} Astro Awani|website=www.astroawani.com|language=ms|access-date=2018-04-20}} This followed months of speculation and search.{{Cite web|url=https://www.themalaysianinsight.com/s/37884/|title=Bidayuh oil and gas veteran picked as Petros CEO, industry sources say {{!}} The Malaysian Insight|website=www.themalaysianinsight.com|language=en|access-date=2018-04-20}}

By 8 November 2017, advertisements to hire human resource manager (HRM), chief operating officer (COO) and chief financial officer (CFO) started appearing on job boards.{{cite web |url=http://mystarjob.com/job/company.aspx?eid=25497 |title= HRM, COO & CFO Advert | work=myStarJob|publisher= Star Media Group |date=8 November 2017}}

In January 2018, PETROS signed a memorandum of understanding (MOU) with [http://www.petrotelenergy.com/ Petrotel Energy Oman LLC] to "explore the possibility of co-operation to develop the downstream sector of oil and gas industries in Sarawak”.{{Cite news|url=https://www.bharian.com.my/bisnes/lain-lain/2018/01/376824/sarawak-oman-teroka-kerjasama-petroleum-pembangunan-tenaga|title=Sarawak, Oman teroka kerjasama petroleum, pembangunan tenaga|date=2018-01-17|work=BH Online|access-date=2018-01-18|language=ms}} In December 2022, Petros collaborate with South Korea's Posco Group on the development of carbon capture and storage (CCS) business.{{cite news |last1=Chung |first1=Hailey |title=Petros and South Korea's Posco to collaborate on carbon capture and storage business in Sarawak |url=https://www.theedgemarkets.com/article/petros-and-south-koreas-posco-collaborate-carbon-capture-and-storage-business-sarawak |access-date=17 December 2022 |publisher=The Edge Markets (Malaysia) |date=12 December 2022 |archive-url=https://web.archive.org/web/20221212114129/https://www.theedgemarkets.com/article/petros-and-south-koreas-posco-collaborate-carbon-capture-and-storage-business-sarawak |archive-date=12 December 2022}} In January 2023, Petros won oil exploration rights from Petronas in Baram Junior Cluster within the Baram Delta Province offshore Sarawak.{{cite news |title=Petros wins PSCs for two offshore clusters in Sarawak |url=https://www.theborneopost.com/2023/01/18/petros-wins-pscs-for-two-offshore-clusters-in-sarawak/ |access-date=19 January 2023 |publisher=The Borneo Post |date=18 January 2023 |archive-url=https://archive.today/20230119120403/https://www.theborneopost.com/2023/01/18/petros-wins-pscs-for-two-offshore-clusters-in-sarawak/ |archive-date=19 January 2023}}

In March 2022, Petronas Dagangan Berhad (a subsidiary of Petronas) sold its LPG business to PetrosNiaga Sdn Bhd (a subsidiary of Petros) in exchange of 49% stake in PetrosNiaga.{{cite news |title=PetDag to sell Sarawak LPG business to Petros unit in cash, share subscription deal |url=https://www.thestar.com.my/business/business-news/2022/03/09/petdag-to-sell-sarawak-lpg-business-to-petros-unit-in-cash-share-subscription-deal |access-date=10 March 2022 |work=The Star (Malaysia) |date=9 March 2022 |archive-url=https://web.archive.org/web/20220310030149/https://www.thestar.com.my/business/business-news/2022/03/09/petdag-to-sell-sarawak-lpg-business-to-petros-unit-in-cash-share-subscription-deal |archive-date=10 March 2022}}

{{Reflist}}

{{authority control}}

Category:2017 establishments in Malaysia

Category:Oil and gas companies of Malaysia

Category:Energy companies established in 2017

Category:Oil exploration

Category:Government-owned companies of Malaysia

Category:Kuching

Category:Malaysian companies established in 2017