KUCHING: Negotiations between Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros) are expected to yield results early next year, following ongoing talks between both parties.
Deputy Prime Minister Datuk Amar Fadillah Yusof said the negotiations involved an exchange of correspondence and remained focused on reaching a commercial settlement.
“There has been an exchange of letters. That shows negotiations are ongoing, and we are now waiting for both sides to come up with an agreement,” he told reporters when met after the 2026 Sarawak Budget Conference (SBC) at the Borneo Convention Centre Kuching (BCCK) here today.
When asked whether the discussions are moving towards a commercial agreement, Fadillah said the correspondence indicates that negotiations are in progress.
“It means there are negotiations. It is ongoing,” he said.
However, he said no final deadline had been set to conclude the discussions.
Earlier, during Forum Session 1 of the conference titled “A Moment with the Deputy Prime Minister of Malaysia and Minister of Finance II”, Fadillah said both Prime Minister Datuk Seri Anwar Ibrahim and Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg had agreed that a negotiated commercial settlement was the preferred approach in resolving issues between Petronas and Petros.
He said relying on legal interpretation through the courts would likely prolong the process and complicate matters, potentially resulting in a lose-lose outcome.
“If we go through the court process, it will take longer and become complex. At the end of the day, it may not be a win-win situation,” he said.
As such, he said both companies had been asked to sit down and identify areas of cooperation that would benefit the nation and provide certainty to businesses and investors.
Fadillah reiterated that correspondence between Petronas and Petros was already in place and expressed optimism that progress would be visible early next year.
“Just a few weeks (left),” he said.
