Petronas reaffirms its role as strategic partner for Sarawak, says president

KUALA LUMPUR (Sept 5): Petroliam Nasional Bhd (Petronas) affirmed its role as a strategic partner for Sarawak, highlighting its substantial investments in the state’s development, said president and group chief executive officer Tan Sri Tengku Muhammad Taufik Tengku Aziz.

He said the national oil and gas company would always act in the country’s best interest and could not engage in negotiations without considering the broader implications to the nation.

“We want Sarawak to develop. We want to help Sarawak realise its ambition.

“However, in the current situation, it is essential for both parties to acknowledge and understand the constraints faced by each side,” said Tengku Muhammad Taufik after announcing Petronas’ financial performance for the first half of the year ended June 30, 2024, here today.

He stated that discussions regarding gas distribution in Sarawak are still ongoing between the federal and state governments.

“We want to continue being a partner to Sarawak and I know some of you have questioned where the negotiation is going.

“We want to build a win-win partnership. We want to help each other grow based on the understanding of each other’s strengths, but most importantly, constraints,” Tengku Muhammad Taufik said.

He highlighted that Petronas has a role not only as a company but for the country.

Regarding whether the gas distribution issue would impact dividend payments to the government, Tengku Muhammad Taufik noted that any change in the arrangement resulting in a value transfer at the topline would inevitably affect the company’s financial capacity.

“The cash flows at Petronas are what ultimately determines our affordability for payouts of dividends.

“As for the implications thereof, the decision is still out (undetermined) because we are still negotiating. Whether it will lead to a period of debt or not is still something to be resolved through these discussions,” he added. – Bernama