KUALA LUMPUR, Feb. 12 -- The ongoing disagreement between Petronas and Sarawak over gas aggregation appears to be rooted more in legal interpretation than in a breakdown of engagement, according to industry observers.

In May 2025, Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Openg signed a Joint Declaration (JD) outlining broad principles for gas aggregation and affirming the co-existence of the federal Petroleum Development Act 1974 (PDA) and Sarawak's Distribution of Gas Ordinance (DGO).

The declaration followed discussions that have been ongoing since 2024 between Petronas and Petroleum Sarawak Berhad (Petros) over the aggregator role in the state.

However, analysts say the disagreement has create...