KUCHING: The ongoing commercial negotiations between Petroliam Nasional Bhd (PETRONAS) and Petroleum Sarawak Bhd (Petros) are progressing well and moving towards a mutually beneficial settlement, with an outcome expected early next year, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
“We are looking into commercial settlement because if we only go along with the interpretation of laws, it will take longer amid a complex court process,” he said during a session at the 2026 Sarawak Budget Conference here yesterday, Bernama reported.
He said both parties should sit down and explore all areas where they can work together, as this would ultimately benefit both the nation and the business community, in line with a win-win approach.
On May 21, in a joint declaration signed by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg at Perdana Putra, it was announced that PETRONAS would continue to fulfil its function, activities, responsibilities and obligations as mandated under the Petroleum Development Act 1974 (PDA 1974) and related regulations.
In the statement, the Prime Minister’s Office (PMO) said fundamental principles have been agreed upon to facilitate further negotiations between PETRONAS and Petros.
The joint declaration acknowledges both federal and state laws, the status of existing agreements and the establishment of a cooperative framework between PETRONAS and Petros.
“All federal and Sarawak state laws related to gas distribution in Sarawak must coexist and be respected by all parties conducting such activities in the state, including PETRONAS and Petros,” the statement said.
The PMO emphasised that both PETRONAS and Petros must work together to further develop the cooperation framework in accordance with national interests, guided by transparent and commercially sound principles.
