Commercial negotiations between Petronas and Petroleum Sarawak Bhd are progressing well towards a mutually beneficial settlement, with an outcome expected early next year.
KUCHING: The ongoing commercial negotiations between Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros) are progressing well.
Deputy Prime Minister Datuk Seri Fadillah Yusof said the talks are moving towards a mutually beneficial settlement, with an outcome expected early next year.
“We are looking into commercial settlement because if we only go along with the interpretation of laws, it will take longer amid a complex court process,” he said during a session at the 2026 Sarawak Budget Conference here.
He said both parties should sit down and explore all areas where they can work together.
This would ultimately benefit not only the nation but also the business community, in line with a win-win approach.
On May 21, a joint declaration was signed by Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Tan Sri Abang Johari Tun Openg.
It announced that Petronas will continue to fulfil its function as mandated under the Petroleum Development Act 1974 and related regulations.
The Prime Minister’s Office said fundamental principles have been agreed upon to facilitate further negotiations between Petronas and Petros.
The joint declaration acknowledges both federal and state laws and the status of existing agreements.
It also establishes a cooperative framework between Petronas and Petros.
“All federal and Sarawak state laws related to gas distribution in Sarawak must coexist and be respected by all parties conducting such activities in the state, including Petronas and Petros,” the statement said.
The PMO emphasised that both entities must work together to further develop the cooperation framework.
This must be done in accordance with national interests, guided by transparent and commercially sound principles.
