KUALA LUMPUR – The commercial settlement signed between the Sarawak government and Petronas today will open a new chapter in efforts to stimulate the development of the oil and gas (O&G) industry, including creating various business opportunities, as well as the expansion of related industries in the state, said the Prime Minister’s Office (PMO).
Prime Minister Tan Sri Muhyiddin Yassin welcomed the agreement to settle matters involving the state’s O&G management via a commercial deal, said the PMO statement.
“The settlement of the O&G management issue, along with the agreement reached previously on the introduction of the petroleum product sales tax in Sarawak, will enable the Sarawak government to expand its revenue collection intended for various development programmes for the well-being of people from all walks of life.”
The signing was witnessed by Chief Minister Datuk Abang Johari Openg and Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
PMO said the deal will enable state government subsidiary Petroleum Sarawak Bhd to play a larger role in the O&G industry by collaborating with Petronas.
This is set to provide increased opportunities for O&G service providers in the state to be involved in more areas related to the industry, it added.
“At the same time, Petronas will continue to play its role as the national oil company, with full power to regulate the development of the overall O&G industry, in line with the country’s laws.”
PMO said the agreement and cooperation struck demonstrate the federal government’s commitment to resolve the matter together with Sarawak.
“It is hoped that the settlement of this issue will open a new chapter in efforts to realise the Shared Prosperity Vision 2030, besides ensuring an inclusive regional development so that the benefits of the country’s developments can be enjoyed by all Malaysians in a fair and equitable manner.” – Bernama, December 7, 2020
