22 June 2024, Saturday | 10:40am

Sarawak gets greater share of O&G revenue under Petronas settlement agreement


KUALA LUMPUR (Dec 7): The Petroliam Nasional Bhd (Petronas)-Sarawak State Government commercial settlement agreement offers Sarawak a greater share of revenues from oil and gas (O&G) found and produced in the state as the deal provides for a consultative framework whereby both parties will be able to jointly discuss and deliberate on matters of importance to the O&G industry including those which affect the interests of the state.

Petronas president and group CEO Tengku Muhammad Taufik and Sarawak State Secretary Datuk Jaul Samion said in a joint statement today the agreement also provides for a more active involvement by Sarawak in the O&G industry through Petroleum Sarawak Bhd (Petros)'s management of onshore O&G resources and investment in upstream offshore ventures.

Tengku Muhammad Taufik and Samion said the settlement agreement was executed today following conclusion of negotiations, facilitated by the Ministry of Finance, on the commercial settlement.

According to Tengku Muhammad Taufik and Samion, Petronas and the Sarawak State Government have resolved their differences over O&G industry matters and the imposition of state sales tax on petroleum products.

"Both the Sarawak State Government and Petronas, continuing its current role as Malaysia’s national oil company, remain committed to working together to create and maintain a stable, conducive business and investment environment for the sustainable growth of the oil and gas industry, both upstream and downstream in Sarawak,” they said.

Source: The Edge Markets


No votes yet