FMT reported earlier this week that Petronas and Petros were deadlocked in negotiations over gas rights, with the East Malaysian state sticking to its original demands despite giving assurances to the contrary. (Petronas pic)
PETALING JAYA: Petroliam Nasional Bhd (Petronas) is Petroleum Sarawak Bhd’s (Petros) best strategic partner for the successful implementation of the Sarawak Gas Roadmap, said a state minister.
Sarawak utility and telecommunications minister Julaihi Narawi said it was crucial for the commercial collaboration between Petronas and Petros to be finalised soon so that the roadmap can be fully implemented.
While the state government’s blueprint was comprehensive, Julaihi said, the key to its success was Petros’s strategic partnership with Petronas, Dayak Daily reported.
“To implement the Sarawak Gas Roadmap effectively, Petros requires a strategic partner, and I firmly believe that Petronas is the most suitable partner for this endeavour.
“If this commercial collaboration can be finalised soon, we will be able to execute the Sarawak Gas Roadmap swiftly and efficiently,” he was quoted as saying.
Earlier this week, FMT reported that Petronas and Petros were deadlocked in negotiations over gas rights, with Sarawak sticking to its original demands despite giving assurances to the contrary.
A Sarawak government insider said the Bornean state’s stance has not changed since last year although federal and Sarawak government leaders have announced that negotiations were progressing.
On Feb 17, Prime Minister Anwar Ibrahim told Parliament Sarawak had agreed that the Petroleum Development Act (PDA) 1974 will remain the overarching framework for governance in Malaysia’s oil and gas industry.
Anwar also announced that all of Petronas’s existing agreements will remain intact and governed entirely by the PDA, and that Petronas and its subsidiaries will not be obliged to comply with any additional requirements imposed under state law.
However, Anwar said Petros would be allowed to perform its role as Sarawak’s gas aggregator under the Distribution of Gas Ordinance 2016, which “must be read together” with the PDA.
Earlier today, Petronas said it was working closely with Putrajaya, Sarawak and Petros on the details of the future arrangement regarding Petros’s role as the state’s gas aggregator.
It said this was to ensure that the rights and interests of all parties, including end-customers and investors, were addressed accordingly.
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