Commentary

State oil rights no cure-all for Sarawak

Questions of whether BN can deliver, and if success can be made of local oil and gas outfit

This week, Sarawak became the first Malaysian state to have its own oil company, Petros. This means after July this year, the granting of prospecting licences to oil companies will be moved to Kuching.
This week, Sarawak became the first Malaysian state to have its own oil company, Petros. This means after July this year, the granting of prospecting licences to oil companies will be moved to Kuching. PHOTO: RAJAH MURUGAIAH/FACEBOOK
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Amid calls for greater autonomy, the federal government has devolved more powers to Sarawak, but the declaration on March 6 that the East Malaysia state has reclaimed full rights to prospect, mine and develop oil and gas has been the biggest announcement so far.

The reason is simple - with the rights, Sarawak now deals directly with the money, which is at the heart of decades-old angst felt by some Sarawakians and their neighbours in Sabah.

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A version of this article appeared in the print edition of The Straits Times on March 09, 2018, with the headline State oil rights no cure-all for Sarawak. Subscribe