The financial implications of the ongoing dispute over gas rights in Sarawak remain uncertain as negotiations between stakeholders are still in progress, according to Datuk Seri Azalina Othman Said, Minister in the Prime Minister’s Department (Law and Institutional Reform).
She emphasized that any commercial terms agreed upon for the distribution of oil and gas resources in the state must take into account both Petroliam Nasional Bhd (Petronas) investments and the future potential of Petroleum Sarawak Bhd (Petros).
“The financial impact depends on the commercial terms and implementation mechanisms that are still being negotiated and have yet to be finalized,” Azalina stated in a written parliamentary reply to Fong Kui Lun (Pakatan Harapan-Bukit Bintang) on Wednesday.
Key Concerns Over the Petronas-Petros Agreement
Fong had inquired about how the agreement between Petronas and Petros would affect Petronas’ overall revenue, particularly its dividend contributions to the federal government.
Azalina previously disclosed that Petronas recognizes Petros as Sarawak’s gas aggregator, excluding liquefied natural gas (LNG). However, Petronas and its subsidiaries are not required to obtain additional licenses or comply with new procedures beyond those outlined in the Petroleum Development Act 1974.
This agreement stems from a settlement reached between Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg during their January 7, 2025 meeting.
The Bigger Picture: Petronas’ Contribution to Malaysia
Since its inception, Petronas has contributed RM1.2 trillion to the Malaysian government, including RM235 billion in dividends over the past five years.
The federal government and Petronas are now finalizing the legal, financial, and operational details of the agreement with Petros and the Sarawak state government.
“All parties are committed to ensuring that commercial decisions protect national interests and do not compromise the country’s economic stability,” Azalina affirmed.
As negotiations unfold, industry experts and stakeholders will be watching closely to see how the agreement shapes the future of Malaysia’s oil and gas landscape—especially in resource-rich Sarawak.
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