Sarawak gas aggregator issue: Petronas, Petros given three months to finalise discussion

KUCHING: The discussion between Petroleum Sarawak Bhd (Petros) and Petroliam Nasional Bhd (Petronas) on the supervision of oil and gas (O&G) trading in Sarawak must be finalised within three months, said Tan Sri Abang Johari Tun Openg.

The Sarawak Premier said the discussion between the two O&G companies is ongoing, with Petronas requesting for Sarawak to defer the implementation of the new arrangement for the time being.

“There is concern over the liquefied natural gas (LNG) distribution. However, we will honour the rules, as we also have equity interest in (the) LNG (project). We have shares; hence the discussion between Petros and Petronas,” he told reporters after attending the ceremony to raise the state flag, Ibu Pertiwi, at the Ibu Pertiwi Square here today.

Abang Johari stressed that the discussion must be completed before Oct 1; otherwise, the new arrangement will be carried out.

“Other parties have signed the agreement, including Shell. Now ExxonMobil is expected to come to Sarawak.

“Opportunities in terms of gas supervision and exploration have already been offered through continuous discussions,” he said.

Petronas is expected to lose a portion of revenue for not being the sole gas aggregator in Sarawak, said RHB Investment Bank Bhd in a research note.

The bank said there have been increasing talks about Petronas facing a potential capital expenditure cut following news of Petros taking over the buying and selling of Sarawak’s natural gas from Petronas.