KUALA LUMPUR – Petroliam Nasional Bhd (Petronas) is awaiting further details on discussions between the federal and Sarawak state governments regarding the scope of cooperation between the national oil company and Petroleum Sarawak Bhd (Petros).
President and group chief executive officer Tengku Tan Sri Muhammad Taufik Tengku Aziz said these details would form the foundation of all future working arrangements between Petronas and Petros, Bernama reported.
“We await the details that will be agreed upon in principle, both by the federal government and Sarawak state government, before we can proceed with materialising all working arrangements; this has to be carefully done,” he told reporters after the announcement of Petronas’s financial performance for the financial year ended Dec 31, 2024 (FY2024) here today.
Prime Minister Datuk Seri Anwar Ibrahim recently said the federal government will meet the Sarawak state government to detail the scope of cooperation between Petros and Petronas.
He said the discussion is to explore the cooperation to be undertaken by both companies involving any new projects in any field.
Meanwhile, Tengku Muhammad Taufik stressed that the national oil firm remains open to collaborations with Petros regarding the state’s hydrocarbon resources.
“We will have to do this carefully. We want to ensure that the interests of both (federal and state governments), as cited by the prime minister, are looked after,” he said.
Tengku Muhammad Taufik explained that all contracts leading up to the Distribution of Gas Ordinance will remain in full force.
“And in fact, Petronas has not behaved irresponsibly; we have not denied anyone any more deals. But as this unfurls, I think there needs to be a realisation that the longer this lasts, the more uncertainty will emerge amongst investors and buyers.
“Thankfully, the positive note is that the principles are coming closer between the prime minister and Sarawak chief minister. We will work out the details. There is no animosity here or lack of communications,” he said.
Responding to questions about oil exploration in Sabah, Tengku Muhammad Taufik said Petronas sees more opportunities in the state moving forward.
In its Malaysia Bid Round 2024, Petronas, through Malaysia Petroleum Management, successfully signed two production-sharing contracts, SB306A and SB306B, located off the coast of Sabah.
“They are more technically challenging than deeper waters, and we must deal with impurities. So, it will be a margin-challenged environment, but there are promising prospective resources that will be brought forward,” he added. – February 25, 2025