Zaid urges Putrajaya to safeguard Petronas interests in Sarawak talks

Former law minister Datuk Zaid Ibrahim expressed concern that political considerations could influence the government’s handling of Sarawak’s demands, particularly over Petros’ role as the state’s sole gas aggregator. — File picture by Yusof Mat Isa

By Malay Mail

First Published: Tuesday, 08 Sep 2026 5:47 PM MYT

PETALING JAYA, Sept 8 — Former law minister Datuk Zaid Ibrahim has urged Prime Minister Datuk Seri Anwar Ibrahim to ensure the federal government and Petronas’ interests are protected as Putrajaya continues negotiations with Sarawak over the state’s oil and gas rights.

His comments come ahead of a meeting on the Malaysia Agreement 1963 (MA63), which Anwar is expected to chair in Kota Kinabalu on Friday.

In a post on X, Zaid expressed concern that political considerations could influence the government’s handling of Sarawak’s demands, particularly over Petros’ role as the state’s sole gas aggregator.

He said Putrajaya should ensure that decisions involving the country’s oil and gas resources were made transparently and with the wider national interest in mind.

“Anwar must not exchange political support for oil and gas to Sarawak,” he said.

Zaid also questioned whether Petros’ position as Sarawak’s sole gas aggregator would be further strengthened following the meeting, claiming the role could be worth RM10 billion annually.

He pointed to Sarawak’s previous success in imposing its state sales tax on petroleum products, which he said had brought the state billions of ringgit in revenue.

Let the courts settle legal dispute, says Zaid

Zaid, who recently joined PAS, said disagreements over the respective legal rights of Sarawak and Petronas should ultimately be determined through the courts rather than political negotiations.

“Let the Federal Court decide; let the rights of Petronas be litigated,” he said.

The former minister said discussions surrounding MA63 should be conducted openly and should balance Sarawak’s constitutional rights with the interests of the federation as a whole.

He also called on opposition parties and Umno leaders to state their positions on the dispute, questioning whether political parties were reluctant to speak out because of the influence East Malaysian parties wield in determining who commands a parliamentary majority.

Sarawak and Petronas have been locked in negotiations over the state’s oil and gas regulatory framework and Petros’ role in the gas sector.

The dispute has raised broader questions over the relationship between federal petroleum laws, Sarawak’s state legislation and the rights arising from MA63.