KUALA LUMPUR (Feb 17): Sarawak has received over RM96 billion in financial benefits from its oil and gas (O&G) industry up to 2024, according to Prime Minister Datuk Seri Anwar Ibrahim.

This includes RM49 billion in cash payments and RM28.6 billion in dividends from the state government's shareholding through the State Financial Secretary of Sarawak in Malaysia LNG Sdn Bhd (MLNG) as of December 2024.

MLNG, a subsidiary of Petroliam Nasional Bhd (Petronas), operates one of the world’s largest liquefied natural gas (LNG) production facilities in Bintulu, Sarawak.

Additionally, Sarawak received RM18.66 billion in sales tax as of the third quarter of last year, Anwar told the Dewan Rakyat while addressing petroleum activities in the state.

He reiterated that Petronas, as the national authority over O&G, has fulfilled its role by ensuring equitable distribution to all states, including Sarawak.

He noted that since 1976, Sarawak’s O&G industry has seen over RM280 billion in upstream investments and infrastructure development.

"Of this, an estimated RM90 billion in contract value was spent over the past decade (2014–2024). Registered vendor companies from Sarawak also secured contracts worth more than RM40 billion during the same period," Anwar said, adding that Petronas had contributed over RM600 million toward education and human capital development in Sarawak over the past decade.

Anwar credited Petronas’ role in nation-building and economic growth to the close cooperation between the state and federal governments.

"That is why we have chosen to make adjustments and recognise Petroleum Sarawak Bhd (Petros) in continuing to drive Sarawak’s economic growth," he said.

The Sarawak government has long sought greater control over its natural resources. Earlier in February, Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said revealed that Petronas now recognises Petros as Sarawak’s gas aggregator, excluding LNG.

The federal government, Petronas, the Sarawak government and Petros are currently refining several aspects of the agreement, including its legal implications.

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