PETRONAS, Sarawak reach consensus on oil & gas, sales tax on petroleum

KUALA LUMPUR: The Sarawak government and Petroliam Nasional Bhd (PETRONAS) have reached a consensus to resolve the negotiations on oil and gas and sales tax on petroleum products in Sarawak amicably.

Prime Minister Tan Sri Muhyiddin Yassin said the consensus was achieved following efforts undertaken to review the implementation of the Malaysia Agreement 1963 officially began in December 2018.

“The successful solution resulted from a sustainable economic, financial and social long-term approach.

“This is also in line with the federal government’s main policy of the Shared Prosperity Vision, which aims at sharing the country’s prosperity across the country’s income, ethnic and regional groups,” he said in a statement today.

Muhyiddin said the solution would provide an avenue for the Sarawak government to become jointly involved in the development of PETRONAS’ oil and gas industry in the state, without compromising its role as a national oil company with full authority in regulating the country’s entire oil and gas industry development in accordance with the Federal Constitution

“A committee, which will be chaired jointly by Senior Minister of Works and Minister of Finance, will ensure that the negotiations continue towards an outcome which would be acceptable to all parties,” he added.