Sarawak And Malaysia S National Oil Corporation Petronas Square Off Presenting Pm Anwar With A Conundrum



The fiercely independent Sarawak state government is pressing national oil corporation Petronas for full control over its oil and gas reserves. The move could embolden other states to demand for more autonomy.
(CNA) – The Sarawak state government has thrown down the gauntlet to Prime Minister Anwar Ibrahim’s administration in a determined campaign for greater autonomy.
In a sharp escalation of the state’s long-standing petition for greater self-rule, Sarawak has set an Oct 1 deadline for state-owned oil corporation Petroleum Nasional Bhd (Petronas) to finalise an agreement that would give the state complete rights over the supervision and the trading of gas extracted from the state.
Mr Abang Johari Openg, Sarawak’s chief minister, said his state administration would consider other options should Petronas fail to meet the new deadline and surrender all rights over the distribution and sale of liquified natural gas (LNG) to its wholly owned Petroleum Sarawak Bhd (Petros).
“Other parties have signed the agreement (to deal directly with Petros), including Shell … Now, ExxonMobil is expected to come to Sarawak,” he told the Malaysian media over the weekend, referring to the oil giants that already have an extensive and established presence in Malaysia. He did not elaborate on the options the state was considering.
 
POTENTIAL TROUBLE FOR PETRONAS Whatever Mr Abang Johari’s state administration may have in mind, Sarawak’s next moves could spell serious trouble for both Petronas and the federal government on a number of fronts, and present Mr Anwar with his most complex political and economic conundrum since he assumed office after the inconclusive November 2022 general election, noted analysts and oil industry executives.
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The post Sarawak and Malaysia’s national oil corporation Petronas square off, presenting PM Anwar with a conundrum appeared first on Malaysia Today.


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