KUCHING: PETRONAS and Petroleum Sarawak Bhd (Petros) are expected to finalise a commercial agreement by early next year, says Datuk Seri Fadillah Yusof.
The Deputy Prime Minister said both parties had exchanged correspondence in ongoing negotiations.
"We are waiting for both parties to reach an agreement. If not, they will have to go to court, so hopefully there will be an agreement," he told reporters after speaking at the 2026 Sarawak Budget conference here on Tuesday (Dec 16).
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During a forum session earlier, Fadillah said Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Openg agreed that a commercial settlement was the best approach to resolve the issues between PETRONAS and Petros.
"If you go with the interpretation of the laws, there will be a longer and more complex settlement because we have to go through the court process.
"At the end of the day, it may not be a win-win solution. It could be lose-lose to all parties," he said.
As such, Fadillah said the federal and state governments agreed that PETRONAS and Petros should sit down and look into the areas where they can work together.
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He said this was a win-win approach that would benefit not only the nation but also both companies.
"Hopefully by early next year, we will know the results of the negotiations," he added.
Finance Minister II Datuk Seri Amir Hamzah Azizan, who also spoke at the forum, said cooperation was vital for the oil and gas sector to grow and attract investors.
He called on both parties to work together to continue developing the nation's resources and to be a stable supplier for the world.
"The worst thing that can happen if we have friction is that people lose trust and don't invest.
"That is a lose-lose situation that we don't want to (see)," he said.
Amir Hamzah also said both parties had agreed to make more gas available for domestic use in Sarawak, strengthening the state's infrastructure and ability to attract industries.
"We must make sure that this engine continues forward. If we interrupt it, our other aspiration to increase economic complexity is also affected," he said.
