Petronas And Sarawak Ink Landmark Commercial Settlement Deal


 


Petroliam Nasional Bhd (Petronas) and the Sarawak state government today signed a commercial settlement agreement on the issues of the state’s sales tax and oil mining laws.
Petronas president and group CEO Tengku Muhammad Taufik Aziz said the agreement would establish a framework between the national oil company and the state government that would see Sarawak more actively involved in its onshore oil and gas activities through Petroleum Sarawak Bhd (Petros).
"Under this landmark commercial settlement agreement, both Petronas and the state government have agreed to establish a consultative framework to enhance collaboration through a structured and formalised avenue comprising a joint coordination committee and an annual strategic dialogue," he said at the signing ceremony today.
He added that the platforms will be co-chaired between Sarawak Chief Minister Abang Johari Openg and Petronas board chairperson Ahmad Nizam Salleh.
The signing ceremony was witnessed by Prime Minister Muhyiddin Yassin, Abang Johari, and Finance Minister Tengku Zafrul Aziz.
The agreement, which was executed on Dec 7, was signed by Muhammad Taufik, Malaysia Petroleum Management senior vice-president Mohamed Firouz Asnan, Sarawak state secretary Amar Jaul Samion, and Sarawak acting state attorney-general Saferi Ali.
Muhammad Taufik said the agreement would open new avenues for collaboration between Petronas and Petros, including the development of the Sarawak Gas Masterplan and ongoing efforts to encourage more participation by Sarawakian vendors.
"In this stride, Petronas hopes that the expeditious granting of necessary licences and the processing of matters relating to land and immigration as well as other matters under the state’s jurisdiction would be facilitated to ensure that the state’s oil and gas industry continues to thrive," Muhammad Taufik added.
He said Petronas' relationship with Sarawak had seen significant returns to the state as both shared the same aspiration for its oil and gas sector.
He noted that beyond unlocking and adding value to its hydrocarbon resources, Petronas had the opportunity to be part of the state’s journey in empowering its people through education, community well-being, development, and environmental efforts.


Meanwhile, Sarawak Deputy Chief Minister Amar Awang Tengah Ali Hasan (photo) said the signing of the agreement would herald the revival of onshore mining in Sarawak, the only place in Malaysia where upstream petroleum activities were taking place.
He said the state government had already issued to Petros two oil mining leases covering areas in Miri and near Marudi.
Oil prospecting licences will soon be issued to Petros in areas described as the "petroleum fairway" in northern Sarawak, he said.
"The state government will collaborate with Petronas to create and maintain a stable investment-friendly environment, conducive for the sustainable development and growth of the oil and gas industry, both upstream and downstream, in Sarawak," he added. 
- Bernama


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