Collaboration Between Petronas and Petros: Details Being Worked Out
Deputy Prime Minister Fadillah Yusof has announced that Petronas and Sarawak’s oil company Petros are still hammering out the details of their proposed collaboration.
Progress of Negotiations
According to Fadillah, any further discussion between the two companies will hinge on the outcome of the negotiations. Petros has submitted a letter to Petronas earlier this week to initiate discussions on key details, including commercial arrangements to ensure both companies operate in alignment. However, the details have not been finalised, and Petros will need to work out the details with Petronas before an agreement can be reached.
Background of Dispute
The two oil companies have been in dispute since the Sarawak state government asserted its rights to exploit oil and gas reserves despite a federal law, the Petroleum Development Act 1974, assigning exclusive rights to Petronas. Last month, Prime Minister Anwar Ibrahim said the Sarawak government had accepted that the act was federal law and that Petronas retained all its contractual obligations in the state. However, Petros would take control of gas distribution in Sarawak, as an aggregator, from March 1.
Government Intervention
Fadillah stated that Anwar and Sarawak premier Abang Johari Openg would intervene in the issue only if there is an impasse. He emphasized that for now, it is essential for Petros and Petronas to work out all the details, including commercial arrangements and how to interpret the two legal frameworks so that they can function together.
Future of Cooperation
In February, Anwar said discussions between Petronas and Petros would cover various aspects of cooperation, including new projects explored by both companies in any field. Abang Johari also stated that while Petronas and Petros will work together to advance both national and state interests, Sarawak’s interests would take precedence.
Conclusion
The collaboration between Petronas and Petros is still in the process of being finalized, with both parties working out the details of their agreement. The outcome of the negotiations will determine the future of their cooperation, which aims to advance both national and state interests.
Frequently Asked Questions
Q: What is the current status of the collaboration between Petronas and Petros?
A: The collaboration is still in the process of being finalized, with both parties working out the details of their agreement.
Q: What are the key details being discussed?
A: The key details include commercial arrangements to ensure both companies operate in alignment, as well as how to interpret the two legal frameworks.
Q: What is the role of the government in this issue?
A: The government will intervene if there is an impasse, but for now, it is essential for Petros and Petronas to work out the details.