Sarawak, Petronas sign commercial settlement
KUCHING: The Sarawak government and Petroliam Nasional Berhad (Petronas) have concluded their negotiations, facilitated by the Ministry of Finance (MOF), on a commercial settlement after having resolved their differences over the imposition of State Sales Tax (SST) on petroleum products as well as oil and gas matters.
A commercial settlement agreement was then signed in Kuala Lumpur on Monday (Dec 7) witnessed by Prime Minister Tan Sri Muhyiddin Yassin and Chief Minister Datuk Patinggi Abang Johari Tun Openg.
“The agreement, among other things, provides for a greater share of revenues for Sarawak from its oil and gas,” said Sarawak state secretary Datuk Amar Jaul Samion and Petronas president and group chief executive officer Tengku Muhammad Taufik in a joint statement.
“It also allows the state to get more actively involved in the oil and gas industry through the management of onshore oil and gas resources by Petroleum Sarawak Berhad (Petros) and investment by Petros in upstream ventures in offshore areas.”
Both the 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, good business and investment environment for the sustainable growth of the oil and gas industry, both upstream and downstream in Sarawak.
“Towards this objective, the Agreement provides for a consultative framework whereby both parties will be able to jointly discuss and deliberate on matters of importance to the oil and gas industry including those which affect the interests of the state,” it added.
