Petronas, Sarawak ink landmark commercial settlement deal, form consultative framework

Sarawak State Secretary Datuk Amar Jaul Samion (left) and Tengku Muhammad Taufik showing the commercial settlement agreement documents during the signing ceremony that was witnessed by Abang Johari and Muhyiddin in Kuala Lumpur today. – Bernama photo

KUALA LUMPUR (Dec 7): Petroliam Nasional Bhd (Petronas) and the Sarawak state government today signed a commercial settlement agreement on the issues involving the state’s sales tax and oil mining laws.

Petronas president and group chief executive officer Tengku Muhammad Taufik Tengku Aziz said the commercial settlement agreement would establish a framework between the national oil company and the state government that would see Sarawak more actively involved in its onshore oil and gas activities through Petroleum Sarawak Bhd (Petros).

“Under this landmark commercial settlement agreement, both Petronas and the state government have agreed to establish a consultative framework to enhance collaboration through a structured and formalised avenue comprising a joint coordination committee and an annual strategic dialogue.

“These platforms will be co-chaired between Chief Minister Datuk Patinggi Abang Johari Tun Openg and Petronas chairman Tan Sri Ahmad Nizam Salleh,” he said at the signing ceremony today.

The signing ceremony was witnessed by Prime Minister Tan Sri Muhyiddin Yassin and Finance Minister Tengku Datuk Seri Zafrul Aziz and Abang Johari.

The commercial settlement agreement, which was executed on Dec 7, was signed by Tengku Muhammad Taufik, Malaysia Petroleum Management senior vice-president Mohamed Firouz Asnan, Sarawak state secretary Datuk Amar Jaul Samion and Sarawak acting state attorney-general Saferi Ali.

Tengku Muhammad Taufik said the agreement would open new avenues for collaboration between Petronas and Petros, including the development of the Sarawak Gas Masterplan and ongoing efforts to encourage more participation by Sarawakian vendors.

“In this stride, Petronas hopes that the expeditious granting of necessary licences and the processing of matters relating to land and immigration as well as other matters under the state’s jurisdiction would be facilitated to ensure that the state’s oil and gas industry continues to thrive,” he added.

Tengku Muhammad Taufik said Petronas’ relationship with Sarawak had seen significant returns to the state as both shared the same aspiration for its oil and gas sector.

He noted that beyond unlocking and adding value to its hydrocarbon resources, Petronas had had the opportunity to be part of the state’s journey in empowering its people through education, community well-being and development and environment efforts hand in hand with the Sarawak state government and its agencies.

Meanwhile Sarawak Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said the signing of the commercial settlement agreement would herald the revival of onshore mining in Sarawak, the only place in Malaysia where upstream petroleum activities were taking place.

He said the state government had already issued to Petros two oil mining leases covering areas in Miri and near Marudi to kick-start the petroleum operations.

Oil prospecting licences will soon be issued to Petros for the facilitation of more hydrocarbons in areas described as the “petroleum fairway” in northern Sarawak, he said.

“The state government will collaborate with Petronas to create and maintain a stable investment-friendly environment, conducive for the sustainable development and growth of the oil and gas industry, both upstream and downstream, in Sarawak,” he added. – Bernama

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