Petronas yet to finalise gas deal with Sarawak, says minister

[KUALA LUMPUR] Petroliam Nasional (Petronas) is still discussing details of a cooperation framework with Sarawak’s oil company as part of efforts to resolve an ongoing dispute over gas resources in the state.

The framework, first mooted in May following a joint declaration signed between Prime Minister Anwar Ibrahim and Sarawak Premier Abang Johari Tun Openg, will be based on agreed principles, said Malaysia’s Law Minister Azalina Othman Said.

“The impact on Petronas’s financial performance can’t be determined at this stage as the terms and implementation mechanisms are still under negotiation and have not been finalised,” Azalina said in a written reply to Parliament on Thursday (Aug 14).

Sarawak has demanded local gas distribution rights from Petronas, which has had full control for 50 years, in its quest to expand its autonomy in recent years. The dispute has stretched into the second year.

Petronas, the national oil firm, runs one of the world’s biggest liquefied natural gas terminals in the Borneo state, which holds the largest gas reserves in Malaysia. BLOOMBERG