CEO: Petronas in ‘active discussion’ with Petros

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KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is currently in “active discussion” with the Sarawak state-owned oil and gas (O&G) company Petroleum Sarawak Bhd (Petros), according to Petronas group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin.

“We are currently discussing with Petros on the working arrangement over the O&G reserves in the state that is acceptable to both,” he told reporters after Petronas’ mid-year 2018 review.

In May, the national oil company filed an application to seek a declaration from the Federal Court on matters pertaining to the Petroleum Development Act 1974 (PDA) and its position with regard to the regulatory controls of upstream activities in Sarawak.

However, the case was dismissed by the Federal Court to commence proceedings to determine Petronas as the sole authority of all upstream O&G activities in the country, including Sarawak.

Wan Zulkiflee pointed out that Sarawak was the only oil-producing state that Petronas is currently in discussions with, and that the group is not involved in any discussions related to state oil royalties.

“We leave that discussion to the federal government and the states. We are guided by the federal government, which is our shareholder,” he said.

He added that the grace period guided by the Sarawak state government on the working arrangement was until end of next year.

Wan Zulkiflee stressed that it is very important to ensure the long-term sustainability and implications of any changes in the local O&G industry. “At the end of the day, we need to ensure the competitiveness of the industry and continue to attract investments,” he said.

The situation between Petronas and Sarawak came in the wake of Sarawak setting up its own O&G company, Petros, as the regulator of O&G activities in the state based on the Sarawak Oil Mining Ordinance.

Source: https://www.thestar.com.my/business/business-news/2018/08/31/ceo-petronas-in-active-discussion-with-petros/