Sarawak Perikatan Nasional chairman Jaziri Alkaf A Suffian says clearer laws and better coordination with Putrajaya are needed to manage the state’s oil and gas sector, warning that having autonomy alone won’t be enough to keep investors confident.
Commenting on the Sarawak government’s enforcement notice to Petronas Carigali Sdn Bhd and ConocoPhillips’s exit from the Salam-Patawali deepwater project, Jaziri said these pointed to signs of deeper structural issues that need urgent attention.
“These events are not isolated. When enforcement actions coincide with a major player pulling out, it sends a signal that our regulatory environment lacks alignment. That can shake investor confidence,” he told FMT.
Jaziri said that Sarawak’s development goals, from infrastructure to innovation, hinge on long-term investor trust.
While acknowledging Sarawak’s right to control its natural resources, Jaziri said that such control must be backed by transparent and reliable laws.
“Autonomy must be accompanied by clarity. Investors want to know that Sarawak’s aspirations are backed by coherent laws and a stable partnership with federal institutions – not a series of overlapping or contradictory rules,” he said.
Jaziri added that state-owned Petroleum Sarawak Bhd (Petros) should not be seen as a rival to national oil company Petronas.
“Petros should not be seen as an adversary. It’s a mechanism for Sarawak to manage its own gas supply, not to create friction,” he said.
“But it must be integrated into a national framework that makes sense to investors and partners alike.”
He pointed to a five-point agreement between Petros and Petronas as a good starting point for collaboration.
It covers mutual recognition of laws, Petros’s role as gas aggregator (excluding LNG), no extra state licences for Petronas, and protection of existing contracts, among others.
“Those five points give us something to build on,” Jaziri said.
“What we need now is a clear, consistent message from both federal and state governments that Sarawak is open for business – under rules that are fair, clear and stable.”
