Petronas and Sarawak ink landmark settlement deal

Prime Minister, Tan Sri Muhyiddin Yassin (second right) and Sarawak Chief Minister, Datuk Patinggi Dr. Abang Abdul Rahman Zohari Tun Abang Openg (second left) witness the Signing Of The Commercial Settlement Agreement Between PETRONAS and Sarawak State Goverment represented by Presiden and CEO of PETRONAS, Tengku Muhammad Taufik (right) dan Sarawak state secretary Datuk Amar Jaul Samion (left).

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) and the Sarawak state government have signed a commercial settlement agreement on the issues involving the state’s sales tax and oil mining laws.

Petronas president and group chief executive officer Tengku Muhammad Taufik Tengku Aziz said the commercial settlement agreement would establish a framework between the national oil company and the state government that would see Sarawak becoming more actively involved in its onshore oil and gas activities through Petroleum Sarawak Bhd (Petros).

“Under this landmark commercial settlement agreement, both Petronas and the state government have agreed to establish a consultative framework to enhance collaboration through a structured and formalised avenue comprising a joint coordination committee and an annual strategic dialogue.

“These platforms will be co-chaired between Chief Minister Datuk Patinggi Abang Johari Tun Openg and Petronas chairman Tan Sri Ahmad Nizam Salleh, ” he said at the signing ceremony.

The signing ceremony was witnessed by Prime Minister Tan Sri Muhyiddin Yassin and Finance Minister Tengku Datuk Seri Zafrul Aziz and Abang Johari.

The commercial settlement agreement, which was executed on Dec 7, was signed by Tengku Muhammad Taufik, Malaysia Petroleum Management senior vice-president Mohamed Firouz Asnan, Sarawak state secretary Datuk Amar Jaul Samion and Sarawak acting state attorney-general Saferi Ali.

Tengku Muhammad Taufik said the agreement would open new avenues for collaboration between Petronas and Petros, including the development of the Sarawak Gas Masterplan and ongoing efforts to encourage more participation by Sarawakian vendors.

“In this stride, Petronas hopes that the expeditious granting of necessary licences and the processing of matters relating to land and immigration as well as other matters under the state’s jurisdiction would be facilitated to ensure that the state’s oil and gas industry continues to thrive, ” he added.

Tengku Muhammad Taufik said Petronas’ relationship with Sarawak had seen significant returns to the state as both shared the same aspiration for its oil and gas sector.

He noted that beyond unlocking and adding value to its hydrocarbon resources, Petronas had had the opportunity to be part of the state’s journey in empowering its people through education, community well-being and development and environment efforts hand in hand with the Sarawak state government and its agencies.

Meanwhile, Sarawak Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said the signing of the commercial settlement agreement would herald the revival of onshore mining in Sarawak, the only place in Malaysia where upstream petroleum activities were taking place. — Bernama

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 , Sarawak state government , oil , revenue ,


Next In Business News

Reservoir Link forms 51:49 JV with ADS Asset
FBM KLCI pares early gains but still trade in green
CTOS Digital launches CTOS Car Insurance
OCBC Bank to raise base rate by 0.25% following OPR revision
Oil prices inch lower as EU's Russian oil ban stalls
Maybank introduces contactless cash withdrawal service
Yew Lee Pacific Group launches IPO prospectus
Press Metal, commodities lead FBM KLCI lower
Ringgit rises on higher oil prices
MR DIY's 1Q weakness a temporary setback

Others Also Read