BINTULU: An agreement between Petroliam Nasional Bhd (PETRONAS) and Petroleum Sarawak Bhd (PETROS) on several key matters under negotiation is expected to be finalised soon, said Prime Minister Datuk Seri Anwar Ibrahim.
He said both sides have made substantial progress on key principles and framework matters following continuous discussions involving him and Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
“In our relationship, we must engage as one team. I am aware that there are also concerns in the discussions regarding PETRONAS and PETROS.
“But I have repeatedly consulted with the Premier. The Deputy Prime Minister, Datuk Amar Fadillah Yusof, has been tasked to work within the team to ensure these views provide space and benefits to both sides, the federal and state, PETRONAS and PETROS,” he said.
He said this during the cheque handover ceremony marking the transfer of Bintulu Port from federal to state ownership held at Menara Kidurong, Bintulu Port Authority here today.
Anwar acknowledged that discussions between the two energy giants have taken time due to their scale and complexity
“I acknowledge that sometimes the discussions between these two giant companies have been extended.
“However, I am pleased to announce that the initial framework, those basic principles, were decided jointly by me and the Premier, and I announced it in Parliament.
“And subsequently, now at least some of those key matters have been agreed upon, and I hope, God-willing, that it will not be long before we can finalise the agreement between PETRONAS and PETROS,” he said.
The issue involving PETRONAS and PETROS drew attention following discussions on the roles of both companies in Sarawak’s gas industry and the implementation of the Distribution of Gas Ordinance (DGO) 2016.
In May last year, the federal government and the Sarawak Government signed a joint declaration outlining an understanding on matters involving both companies.
Under the understanding, PETROS is recognised as the gas aggregator in Sarawak under the DGO, while PETRONAS continues to perform its functions and responsibilities under the Petroleum Development Act 1974 (PDA 1974).
Both parties also agreed to continue negotiations to further detail the cooperation framework.
