KUALA LUMPUR (Sept 24): Petroliam Nasional Bhd is not considering any legal action against the Sarawak government or its state-owned oil and gas company Petroleum Sarawak Bhd (Petros) over the distribution of natural gas there.
This was clarified in a joint statement by the three parties issued by the Sarawak premier's office on Tuesday, following a meeting between them on the same day.
"It is confirmed that no legal action is being contemplated by Petronas against Sarawak and Petros," the statement read.
Ongoing discussions between them regarding gas distribution in Sarawak will be "concluded soon", and they respect and abide by federal and state laws regarding the matter, the statement further read.
Petros signed gas sale agreements (GSAs) with Sarawak Petchem Sdn Bhd and Sarawak Energy Bhd in July, following previous announcements in the Sarawak state assembly that Petros was set to take over from Petronas as the sole gas aggregator in Sarawak.
Currently, a majority of Petronas' LNG export cargoes from Malaysia are either sourced from Sarawak, or pass through the gas infrastructure in the state.
The new arrangement could impact Petronas' cash flow, which ultimately determines its dividend payout to the federal government, Petronas president Tan Sri Tengku Muhammad Taufik said at the group's financial results briefing earlier this month.
Singapore's Channel News Asia (CNA) previously reported that Petronas was considering filing a court injunction against Sarawak to maintain its role as the sole custodian of Malaysia's hydrocarbon resources, quoting sources.
However, Sarawak Premier Abang Johari Openg dismissed claims of stalled discussions, stating that talks with Petronas were ongoing and expected to conclude before October 1 — a deadline that Abang Johari first revealed in July this year.
At the time, the Sarawak premier said Petros would collaborate with Petronas in developing upstream and downstream activities in the state, as he affirmed that the Sarawak government and Petros had no issues with Petronas.
Sarawak is pushing for bigger control of oil and gas operations in the state amid negotiations around the Malaysia Agreement 1963, of which the state is a signatory. Petronas, meanwhile, was established in 1974 under the Federal Constitution as the custodian of Malaysia's petroleum resources.
Read also:
Petronas says win-win partnership imperative amid report it may take Sarawak to court
Sarawak’s bid to control gas supply a concern for LNG buyers, international oil majors — Petronas
Lower dividend to govt possible with Sarawak's bid to control its gas resources, Petronas chief warns
Petros-Petronas discussions still ongoing — Sarawak premier