KUCHING: The payment of the State Sales Tax (SST) is a sign of agreement between Petroliam Nasional Berhad (Petronas) and the Sarawak government based on the long-term goal of sustainability of the petroleum industry in Sarawak and Malaysia as a whole.

Petronas chairman Tan Sri Ahmad Nizam Salleh said that as a national oil and gas corporation, Petronas was responsible for ensuring the sustainability of the oil and gas industry.

“Nevertheless, at the same time, we always strive to balance the responsibility of business expansion and the importance of community development, including in the state of Sarawak.

“To achieve this, we always pay attention to the importance of close cooperation with the Sarawak government and resolve various issues pertaining to the petroleum industry,” he said in a statement yesterday.

Yesterday, Petronas and its subsidiaries fully settled their outstanding payment of SST worth RM2,956,671,407.36 on petroleum products for 2019 to Sarawak via a cheque presented to Chief Minister Datuk Patinggi Abang Johari Tun Openg by Ahmad Nizam.

Ahmad Nizam described the ceremony as another step towards fostering the good relationship between the state government and Petronas.

Moving forward, he hoped that both parties could concentrate on the exploration and development of oil and gas fields in the state as well as achieving the desire for common prosperity.

“I am confident that the oil and gas industry in Sarawak will continue to thrive and record rapid growth under the leadership of Abang Johari,” he said.

He further extended his gratitude and appreciation to Prime Minister Tan Sri Muhyiddin Yassin and the chief minister on their guidance and advice for both parties to reach a consensus on the SST on petroleum products in Sarawak.