Petronas and Petros in discussion over S’wak’s O&G resources


The deal would be worth as much as 3.5 billion rand (US$256mil), or about 20% of Engen

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is currently in discussion with the Sarawak state-owned oil and gas company Petroleum Sarawak Bhd (Petros), according to  group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.

“We are currently discussing with Petros on the working arrangement that is mutually acceptable for both,” he told reporters after Petronas’ mid-year 2018 review.

In May, the national oil company filed an application to seek a declaration from the Federal Court on matters pertaining to the Petroleum Development Act 1974 (PDA) and its position with regard to the regulatory controls of upstream activities in Sarawak. 

However, the case was dismissed by the Federal Court to commence proceedings to determine Petronas as the sole authority of all upstream oil and gas activities in the country, including Sarawak.

Wan Zulkiflee pointed out that Sarawak is the only oil-producing state that Petronas is currently in discussion and that the group is not involved in any discussion in regards to oil royalties.

“We leave that discussion between the federal government and the states. We are guided by the Federal government, which is our shareholder,” he said.

He added that the grace period given by Sarawak is until end of next year.

Wan Zulkiflee stressed that it is very important to ensure the long-term sustainability of the local oil and gas industry.

The situation between Petronas and Sarawak came n the wake after Sarawak setting up its own oil and gas company, Petros, as the regulator of oil and gas activities in the state based on Sarawak Oil Mining Ordinance (OMO). 
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Petronas

   

Next In Business News

MDEC appoints Richard Loh as CITO
Stats Dept: Services PPI for 2Q inched up slightly
Ringgit slightly lower on downward oil trend
DoJ: Over US$1b in misappropriated 1MDB funds repatriated to Malaysia
Kenanga maintains 'market perform' on Pavilion REIT
Quick take: Mr DIY falls after earnings miss expectations
Semicon and tech stocks top gainers
Quick take: MI Technovation shares at five months high
MR DIY sales to bounce higher in coming quarters
Trading ideas: MI Technovation, T7, Stella, Focus Dynamics, MR DIY

Stories You'll Enjoy


Vouchers