Petronas Has Till Oct 1 To Decide On State Gas Deal Says Abang Jo



The Sarawak premier says there are concerns over LNG in which the state has a stake, so discussions will continue. (Bernama) – The discussion between Petroleum Sarawak Bhd (Petros) and Petroliam Nasional Bhd (Petronas) on the supervision of oil and gas trading in Sarawak must be finalised by Oct 1, premier Abang Johari Openg said.
He said the discussion between the two O&G companies is ongoing, with Petronas requesting that Sarawak defer the implementation of the new arrangement for the time being.
“There are concerns over the liquefied natural gas (LNG) distribution. However, we will honour the rules, as we also have equity interest in LNG.
We have shares, hence the discussion between Petros and Petronas, he told reporters after attending the ceremony to raise the state flag, Ibu Pertiwi, at Ibu Pertiwi Square here today.
Abang Johari said the discussion must be completed before Oct 1, otherwise, the new arrangement will be carried out.
“Other parties have signed the agreement, including Shell. Now ExxonMobil is expected to come to Sarawak.
Opportunities in terms of gas supervision and exploration have already been offered through continuous discussions, he said.
Petronas is expected to lose a portion of revenue because it will no longer be the sole gas aggregator in Sarawak, said RHB Investment Bank Bhd in a research note.
The bank said there has been talk about Petronas facing a potential capital expenditure cut following news of Petros taking over the buying and selling of Sarawak’s natural gas.
 
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