Malaysia prime minister confident on resolving Petronas-Petros dispute

[KUALA LUMPUR] Malaysia’s prime minister said on Sunday (May 4) he was confident that a dispute between energy company Petronas, owned by the federal government, and Petros, owned by the state of Sarawak, will be resolved through discussions with the Sarawak premier.

The two companies’ long-running dispute over gas distribution rights escalated last week, with Petronas saying on Friday its Petronas Carigali subsidiary had received notices from the Sarawak state government about its activities there.

Petronas gave no further details but local media said Sarawak authorities told the company’s Miri Crude Oil Terminal that it lacked a proper operating licence.

Sarawak has given Petronas Carigali 21 days to obtain the required licence or face financial penalties under local state law, according to the reports.

Prime Minister Anwar Ibrahim said he spoke to Sarawak state premier Abang Johari Openg regarding Petronas and Petros issues, based on principles that were previously agreed upon.

“When the premier returns from his official visit to London, we will immediately conduct further discussions to finalise it.

“I am highly confident that this issue will be resolved prudently by standing on the path of healthy and meaningful discourse,” he said.

Anwar also urged all parties to refrain from taking any actions or issuing any statements in the meantime.

Negotiations between Petronas and Petros stalled last year, heightening uncertainty over operations and investments in Sarawak’s oil sector.

The impasse has raised concerns about the potential impact on Petronas revenues, which are a major source of income for the federal government. Sarawak holds more than 60 per cent of Malaysia’s gas reserves. REUTERS