KUALA LUMPUR (Oct 17): Negotiations between Petroliam Nasional Bhd (Petronas) and Sarawak's state-owned oil and gas company Petroleum Sarawak Bhd (Petros) over the distribution of natural gas in the Borneo state are still ongoing, said Minister in the Prime Minister's Department Datuk Seri Azalina Othman Said.
This is despite Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg previously stating that the talks were expected to conclude before Oct 1 — a deadline he initially mentioned in July this year.
In a written parliamentary reply to Sibu Member of Parliament Oscar Ling Chai Yew, Azalina said the talks have been prolonged due to the complexities surrounding Sarawak's Gas Distribution Ordinance (Amendment) 2023.
"This involves various aspects and significant impacts from the implementation of Sarawak's Gas Distribution Ordinance (Amendment) 2023 and existing laws," she said.
The minister added that all parties are working to find a solution that addresses the interests and needs of everyone involved.
Petros had signed gas sale agreements (GSAs) with Sarawak Petchem Sdn Bhd and Sarawak Energy Bhd in July, following earlier announcements in the Sarawak State Assembly that Petros was set to take over from Petronas as the sole gas aggregator in Sarawak.
Currently, the majority of Petronas' LNG export cargoes from Malaysia are either sourced from Sarawak or pass through the state's gas infrastructure.
Singapore's Channel News Asia 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, citing sources.
However, Petronas, the Sarawak government, and Petros met on Sept 24 and issued a joint statement refuting the claim, confirming that no legal action is being contemplated by Petronas against Sarawak and Petros.
Petronas pays Sabah RM508.8 mil in sales tax for first nine months
In response to a query from Ranau MP Datuk Jonathan Yasin, Azalina said Petronas and its subsidiaries paid the Sabah government RM508.8 million in state sales tax on petroleum products for the first nine months of 2024.
Additionally, the Sabah government received petroleum revenue payments totalling RM640.8 million for the first half of 2024.
As of Aug 30, production from 18 offshore oil fields in Sabah recorded 161,100 barrels per day, Azalina noted.
Meanwhile, production from 68 offshore oil fields in Sarawak reached 154,800 barrels per day. However, Azalina did not disclose the petroleum revenue or sales tax received by the Sarawak government.
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