00:01A goose that produces golden eggs should be kept for the future of the people of this country.
00:09And the gas industry, we work together with Petronas. After all, we need Petronas.
00:16Across party lines and on both sides of the South China Sea, a clear message is emerging.
00:23Safeguard Petronas, Malaysia's golden goose, but give due respect to ceramics needs and ambitions.
00:29In recent years, Sarawak has been pushing for more control over the gas supply chain.
00:38In particular, it wants to be appointed the sole gas aggregator in the state.
00:43Here's how it works. Gas is extracted by upstream producers.
00:47The aggregator buys that gas, sets the price, and sells it to industries and utilities.
00:53For years, Petronas was that aggregator.
00:56It kept prices stable, insured national supply, and earned 10 to 20 billion ringgit annually doing the job.
01:03Now, Petros, Sarawak's state-owned oil firm, wants that role.
01:09That means it can now set prices and eventually earn up to 20 billion ringgit per year at Petronas' expense.
01:17That is a significant sum, given that Petronas is expected to contribute some 30 billion ringgit in annual dividends to the federal government.
01:26The loss of pricing power also means the once seamless integration of upstream and downstream operations will become disjointed.
01:33Petronas, the golden goose, is now under threat on two fronts, financially and operationally.
01:40Petronas contributes between 30 billion ringgit and 50 billion ringgit a year to the national coffers, almost 20% of national revenue.
01:54That's about the same size as our entire healthcare budget.
01:59Take that away, and it's akin to losing our hospitals, clinics, and ambulance services.
02:04And it's not just about numbers.
02:06Petronas powers an economic multiplier worth trillions, directly and indirectly supporting over 400,000 jobs across the country.
02:15And if other oil-producing states like Kelantan, Terengganu, and Sabah follow Sarawak's lead, the entire national gas system could disintegrate.
02:25Recently, Sarawak issued a legal notice to Petronas Carigali claiming it was operating illegally.
02:31That triggered a massive public outcry across the country.
02:36Petronas Carigali claiming it was operating illegally.
02:39It's not possible to kill the goose that lay the golden egg.
02:47Because if Petronas could go, Sarawak would go.
02:50So the fair deal is to look at the real formula so that a company, a goose that produce a golden egg should be kept for the future of the people of this country.
03:05So as a politician who thinks about the future of our country, I would defend Petronas for the last mile.
03:14Putrajaya MP Radzi Jidin wants the government to resolve the Petronas-Petros issue without delay or risk seeing the national oil company's golden era fade into the past.
03:25Ahmad Fadli Shaari warns that ceding Petronas' rights could lead to a 30-40% reduction in federal revenue.
03:32He says the government is obliged to disclose the financial implications of such a move.
03:37To destroy Petronas, I think, is a bad move.
03:43Because this is one company that Malaysians are proud of.
03:49It's a great company.
03:51But for heaven's sake, don't kill the goose that lays a golden egg.
03:56Sarawak says it is asserting its rights under state law.
04:00But leaders say this should be a negotiation, not a war.
04:05And the gas industry, we work together with Petronas.
04:10After all, we need Petronas too.
04:12And acknowledging that since Petronas was already formed and also managing all the oil and gas sector in Sarawak,
04:23that's why eventually what they have agreed is the commercial arrangement.
04:28Sarawak's Utility and Telecommunications Minister, Julahi Narawi, believes Petronas is best placed to implement the Sarawak Gas Roadmap 2030 effectively.
04:38Kerajaan, Persekutuan, and Kerajaan Negeri Sarawak has acknowledged that the first act of the PDA 1974, as it is known as in the Constitution.
04:51Sarawak claims it deserves a bigger share, arguing that oil and gas found within 200 nautical miles of its coast is within its territorial boundaries.
05:00The state argues that its boundaries were extended under a colonial-era order issued by Queen Elizabeth II in 1954.
05:09It also relies on state enactments such as the Oil Mining Ordinance 1958 and the Distribution of Gas Ordinance 2016
05:16and has established Petros, the state's very own oil company, to assert control over ONG resources within its borders.
05:23However, experts question the legitimacy of these claims.
05:27They argue that the Petroleum Development Act of 1974 grants Petronas exclusive ownership of all onshore and offshore petroleum resources overriding state laws.
05:37Article 75 of the Federal Constitution provides that in the event of an inconsistency,
05:43federal law shall prevail over state law and that the state law shall, to the extent of the inconsistency, be void.
05:50I would call it a policy and regulatory fog.
06:00The simple reason is that international oil companies don't know who is in charge anymore.
06:05That fog has led Shell to file for court protection and may explain ConocoPhillips' withdrawal from a 13.7 billion ringgit deep water project.
06:14Opposition MP and former Foreign Minister Saifuddin Abdullah says there may be consequences on the sovereignty of the nation's energy ecosystem if Petros turns to foreign partners.
06:31What if they were required to invite other parties to come in? That is going to be the tricky part.
06:40From which country would the other party come in to do the, to exploit.
06:47Other Sarawakian leaders are also urging caution.
06:51Bahawa tindakan itu, macam saya kata hari itu, membunuh angsa emas mereka sendiri.
06:58Sarawak ni, dia ada banyak case, yang mana apabila mereka menguruskan sesuatu,
07:04they are facing problem sebenarnya, they are in trouble.
07:07Client mereka tidak besar, connection mereka tidak besar, kemudian pengalaman mereka juga tidak jauh.
07:14We have to be pragmatic. We do not want to be champions only in our own backyard.
07:20We must first get the golden goose to lay a few more golden eggs.
07:30The path forward, many argue, is not to rupture, but through a structured recalibration of roles.
07:37State governments can set up their own oil companies, but the question I would ask them is to what end?
07:45So as long as there's clarity, we take this portion, you take this portion,
07:49and there's clarity to the international investors, then it's okay.
07:53Clarity is needed, fast.
07:56Because this is no longer just about Sarawak.
07:59It's about the whole country.
08:01Everyone from MPs, the government, the leaders in Sarawak, and the public has spoken.
08:06The golden goose must remain intact for the nation to thrive.
08:10What we can do is look to share its eggs more equitably.
