KUALA LUMPUR (Sep 10): National oil and gas corporation Petroliam Nasional Bhd (Petronas) has reiterated its commitment towards achieving mutual resolution regarding the distribution of natural gas in Sarawak, as it is still in discussions with both the state and federal governments, as well as Sarawak state-owned Petroleum Sarawak Bhd (Petros).
This came after an article by Singapore's Channel News Asia (CNA) last Saturday (Sept 7) which reported, citing government officials close to the matter, that Petronas was mulling over filing a court injunction against Sarawak to maintain its role as the sole guardian of Malaysia's hydrocarbon resources.
However, the statement released by Petronas on Tuesday, stop short of confirming or denying the veracity of the CNA report, whether it is in fact considering legal action to stop Sarawak's bid to take greater control of the trading and extraction of gas and other oil-related products in the state.
"Petronas is of the view that it is imperative that a win-win partnership is established based on the understanding of each other’s strengths and constraints to reach a holistic resolution. Our position is that any resolution developed by all parties must have the country’s best interest at heart and should not jeopardise the economic stability of the country," it said.
"To this end, Petronas remains fully committed to work together with all parties to preserve a thriving and conducive investment climate in Malaysia," Petronas added.
According to the CNA article, Petronas is considering filing a court injunction to avoid any confrontation between the federal government and the state government, as the matter involves alleged constitutional disputes.
The source in the article said that there has been "no middle ground reached" between Petronas and Sarawak following the ongoing discussions, and that the only option left is "to turn to the courts".
However, the article stated the source’s implication that Prime Minister Datuk Seri Anwar Ibrahim wants Sarawak's demands to be managed “at the corporate level with Petronas without involving the federal government”.
Petronas president Tan Sri Tengku Muhammad Taufik on Sept 5 acknowledged that negotiations have been difficult but denied that there have been clashes between the national oil corporation and its Sarawak state counterpart in reaching a new arrangement, maintaining that discussions have been undertaken professionally between all parties.
"So I know some people are spreading either mal-informed, misinformed, or viciously-informed articles about confrontations between ourselves and Petros. Yes, the discussions and negotiations are difficult, but we have done so in a constructive, professional, and engaging manner. Channels of communications remain open," he said following media queries at the group's half year financial results announcement.
To recap, Petros in July signed gas sale agreements (GSAs) with Sarawak Petchem Sdn Bhd and Sarawak Energy Bhd, marking a step forward for the Sarawak state-owned company to take over the role of the sole gas aggregator from Petronas to buy and sell all natural gas in the state.
However, negotiations are still ongoing between the federal government, Sarawak state government, Petros and Petronas to execute the details of the new arrangement.
It is worth noting that 90% of all Petronas' liquefied natural gas cargoes in the country are sourced from or through Sarawak.