MALAYSIAN oil firms Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros) are finalising details on a long-delayed agreement over gas distribution in the state of Sarawak, Prime Minister Anwar Ibrahim said on Thursday (Dec 12).
The two firms have been in a months-long impasse over plans by Sarawak to transfer control over all gas trading in the energy-rich state from Petronas, whose sole shareholder is the Malaysian government, to Petros.
Sarawak’s premier Abang Johari Openg had said this week a resolution had been reached, with an official announcement to be made by Anwar soon, according to media reports.
Anwar said “clear decisions” had been made, but the firms were still in discussions on finer details.
“We are working on the details, the parameters and the legal implications,” he told reporters on Thursday, without elaborating.
Sarawak, on Borneo island, has long sought greater control of its natural resources and in February appointed Petros to procure, distribute, supply and sell all natural gas produced in the state to downstream buyers.
The state had initially wanted Petros to assume control of natural gas activities in Sarawak from Petronas in July this year but the firms became embroiled in lengthy negotiations, with an Oct one deadline for talks passing without agreement.
The deadlock had sparked some industry worries due to uncertainty over the potential impact on Petronas, a major contributor to federal coffers, and on energy activities in Sarawak, which holds over 60 per cent of Malaysia’s gas reserves. REUTERS
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