File photo for illustration purposes

KUCHING (May 2): Batu Kitang assemblyman Lo Khere Chiang opines that ConocoPhilips’ withdrawal from the Salam-Patawali deepwater project serves as a long-overdue opportunity for Sarawak to take greater control of its economic future.

The Sarawak United Peoples’ Party lawmaker said the project is still in the feasibility stage.

“This is precisely why ConocoPhillips is able to exit the venture with Petronas at this point. However, the door to future investment in Sarawak is not closed.

“It could very well remain open for ConocoPhillips to re-engage, this time with Sarawak represented by Petros and on terms that are fairer for Sarawak,” he said in a statement today.

The statement was issued in response to recent reports on ConocoPhillips’ withdrawal from the Salam-Patawali deepwater project, sparking concerns about investor confidence in the state’s growing role in the oil and gas sector through Petroliam Sarawak Berhad (Petros).

Lo said a more balanced structure could take the form of a 50:50 joint venture between Sarawak and ConocoPhillips, with this, Sarawak might still allocate five per cent to the federal government.

For over 50 years, he said Sarawak had received only a five per cent cash payment from oil and gas revenue under the Petroleum Development Act (PDA) 1974, which was enacted during the Emergency period and was never passed by the Sarawak State Legislative Assembly.

Despite contributing billions to the national coffers, he said Sarawak had lagged behind in infrastructure and development.

“Federal budget allocations have remained disproportionately small, especially when measured against Sarawak’s vast landmass and complex logistical needs,” he said.

Lo said while Sarawak awaits the court’s decision on its legal challenges to the validity of the PDA, it is important to note that the state has its own Oil Mining Ordinance (OMO) 1958, which predates the PDA and forms the legal foundation for Sarawak’s assertion of regulatory control over its resources.

Regardless of the outcome in court, he said Sarawak deserves a much greater role in managing and benefiting from its own natural resources.

“If Petronas can form joint ventures and operate oil fields, then so can Petros, with proper capacity-building and strategic partnerships. In many joint ventures, even when Petronas holds a 50 per cent stake, the actual operational work is still carried out by international companies like Shell or ConocoPhillips.”

Lo said if ConocoPhillips chose to step away, others will come, especially if Sarawak remains open to international investors and offers a transparent, fair and mutually beneficial investment climate.

“This is why Premier Abang Johari’s call to ignore the cynical voices of outsiders is not only justified, it is essential. Under his leadership, the GPS government is advancing strategies that are sound, forward-looking, grounded in integrity and aligned with Sarawak’s long-term interests,” he said.