Wed, 19 Mar 2025
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Sarawak proves Petroleum Development Act has limits
Published on: Thursday, August 08, 2024
Published on: Thu, Aug 08, 2024
By: David Thien
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Sarawak proves Petroleum Development Act has limits
Fong said even under the PDA, Petronas cannot ignore the fact that it is operating in state territory, as under the 1954 Order in Council which expanded the boundaries of Sabah and Sarawak to cover the seabed and subsoil in the continental shelf which is part of the state land totally under the control of the two states.
KUCHING: The Petroleum Development Act (PDA) 1974 vesting all hydrocarbon resources  under Petronas does not extinguish Sarawak’s constitutional right to control its land from which these oil and gas are extracted.

The same should also apply for Sabah as even though Parliament passed the Labuan Act, a special provision for the purposes of the PDA, whatever petroleum resources extracted from and around the federal territory is deemed to be part of Sabah, which is entitled to its share of royalty and other revenue payments.

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Sarawak Government legal advisor Dato Sri JC Fong pointed this out at the Second Borneo States Symposium themed “Realising the Dreams and Visions of the Peoples of the Borneo States” at the Borneo Cultures Museum Auditorium, recently.

It was organised by “The Sarawak Initiatives” (TSI) and “Sabah Action Body Advocating Rights” (Sabar).
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