Terengganu govt mulls buying stake in Petronas

KUALA TERENGGANU: The Terengganu state government says it will consider buying a stake in Petroliam Nasional Bhd (Petronas) if it is for a reasonable amount of equity.

Mentri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said the state government did not have the financial capacity to buy the entire shareholdings of the national oil company.

“It will depend on the relevant assets i.e. oil wells, as to size and price, among others. If it amounts to billions (of ringgit), we (the state government) cannot afford it. (But) states like Sabah and Sarawak have large cash reserves compared to Terengganu.

“But if it’s in the form of equity, say 5% or 10%, then we can probably consider, (buying) a reasonable amount of equity. In Terengganu we have many oil wells. If one oil well comes to only RM10mil or RM20mil, then we can buy, ” he said when met by reporters after chairing a state executive council meeting at Wisma Darul Iman.

Primer Minister Tun Dr Mahathir Mohamad has reportedly said that the government is considering selling stakes in Petronas to states where the company’s oil and gas fields are located, in an effort to raise funds for the debt-laden government.

However, Ahmad Samsuri said the state government has not been officially informed about the proposal and would need detailed information before making any decision.

Meanwhile, he said Terengganu continued to receive a 5% oil royalty from the federal government and had not made any demand to raise the royalty payment to 20% as has been done by Sabah and Sarawak. — Bernama

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