Petronas, Sarawak agreement to stimulate OG industry development - PMO

KUALA LUMPUR:The commercial settlement agreement signed between the Sarawak government and Petroliam Nasional Bhd (Petronas) today will open a new chapter in efforts to further stimulate the development of the oil and gas (OG) industry, including creating various business opportunities, as well as the development of related industries in Sarawak, the Prime Minister's Office (PMO) said.

Tan Sri Muhyiddin Yassin welcomed the agreement to settle the issue involving the state's OG management via a commercial agreement, it said.

"The settlement of the OG management issue, along with the agreement reached previously on the introduction of petroleum products sales tax in Sarawak, will enable the Sarawak state government to expand its revenue collection intended for various development programmes for the well-being of people from all walks of life,” PMO said in a statement today.

The signing was also witnessed by Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg and Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

PMO said the agreement struck would enable Sarawak government's subsidiary Petroleum Sarawak Bhd (Petros) to play a larger role in the OG industry by collaborating with Petronas.

In addition, it said, this was set to open more opportunities for OG service providers in Sarawak to be involved in more areas related to the industry.

“At the same time, Petronas will continue to play its role as the national oil company with full power to regulate the overall OG industry development in line with the country's laws,” it said.

PMO said the two parties’ agreement and cooperation in sealing the commercial deal truly demonstrated the Federal Government's commitment to resolve the matter together with the Sarawak state government.

“It is hoped that the settlement of this issue will open a new chapter in the efforts to achieve the Shared Prosperity Vision 2030 besides ensuring an inclusive regional development so that the benefits from the country's developments can be enjoyed by all Malaysians in a fair and equitable manner,” it added.

-- BERNAMA