Malaysia's Petronas, Petros finalising deal on gas distribution in Sarawak state, PM says

Anwar Ibrahim, the Prime Minister of Malaysia, said that Petroliam Nasional Berhad and Petroleum Sarawak Berhad are working to finalize details for a long-delayed gas distribution agreement in Sarawak.

Both companies have been at odds for months over Sarawak's plans to take control of all gas trading within the energy-rich state away from Petronas - whose sole shareholder, the Malaysian Government, is Petros.

Media reports claim that Sarawak Premier Abang Johari openedg said a solution had been reached this week, and Anwar will make an announcement soon.

Anwar stated that "clear decisions" were made but that the firms are still discussing finer details.

He told reporters Thursday that he was working on the "details, the parameters, and the legal implications".

Sarawak on Borneo Island has been seeking greater control over its natural resources for a long time. In February, Petros was appointed to purchase, distribute, provide and sell to downstream buyers all the natural gas produced by the state.

Petros and Petronas had been in negotiations for a long time before the Oct. 1, 2015 deadline passed without an agreement.

Due to the uncertainty surrounding the possible impact of this deadlock on Petronas - a major contributor to the federal coffers - and energy activities in Sarawak – which contains over 60% Malaysia's natural gas reserves – some industries were concerned. (Reporting and writing by Ashley Tang, Rozanna Latiff, Editing by Martin Petty).

(source: Reuters)