PETRONAS-Petros negotiation to continue


KUALA LUMPUR: A Malaysian court has granted a request by national energy firm Petroliam Nasional Bhd (PETRONAS) and the Sarawak state-run company Petroleum Sarawak Bhd (Petros) for an adjournment in a case involving a dispute over gas rights in the state, according to PETRONAS.

The case in the High Court of Kuching, Sarawak, had been adjourned for one month to allow ongoing negotiations between the parties to continue, PETRONAS said in a statement.

“The parties are still involved in discussions with an aim of bringing matters to resolution,” the company added in the statement yesterday.

PETRONAS did not give details of the court case in its statement and did not immediately respond to a request for further information.

Local media had reported that Petros was suing PETRONAS in Sarawak for allegedly supplying natural gas without a valid licence, and was seeking a court declaration that PETRONAS’ RM7.95mil payment demand under a bank guarantee was unlawful.

Talks between PETRONAS and Petros over gas distribution rights in Sarawak had been deadlocked since last year.

In May, the Sarawak government issued notices to a PETRONAS unit accusing it of operating without a proper licence, according to PETRONAS and local media reports. — Reuters

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