Petronas reaffirms commitment to finding mutual resolution

KUCHING: Petronas has reaffirmed its commitment to finding a mutual resolution on natural gas distribution in Sarawak as discussions with the state government, the federal government, and Sarawak’s state-owned Petroleum Sarawak Bhd (Petros) continue.

This follows a report by Singapore’s Channel News Asia (CNA) on Saturday (Sept 7), which cited sources familiar with the matter that Petronas was considering legal action against Sarawak to retain its exclusive role in overseeing Malaysia’s hydrocarbon resources.

In a statement issued today (Sept 11), Petronas neither confirmed nor denied the claim made in the CNA report.

“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.

“To this end, Petronas remains fully committed to work together with all parties to preserve a thriving and conducive investment climate in Malaysia,” it said.

The CNA article had highlighted that Petronas was reportedly considering the legal option to prevent escalating tensions on the matter.

On Tuesday, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said there is no conflict between the state government and Petronas, despite rumours of a potential legal battle.

He clarified that Petros is actively collaborating with Petronas and that negotiations are ongoing.

On Sept 5 Petronas president Tan Sri Tengku Muhammad Taufik on Sept 5 had said that negotiations have been difficult but denied that there have been clashes between Petronas and its Sarawak state counterpart in reaching a new arrangement,

He said 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.