Commercial Settlement Agreement inked, securing Sarawak’s commercial standing in O&G industry

Awang Tengah delivering his speech during the signing ceremony in Kuala Lumpur today (Dec 7l 2020). Graphics courtesy of Bernama.

KUALA LUMPUR, Dec 7: Sarawak has secured its fair share of participation, opportunities and profit sharing in the oil and gas (O&G) industry alongside national oil corporation Petroliam Nasional Berhad (Petronas).

Deputy Chief Minister Datuk Amar Haji Awang Tengah Ali Hasan said the Sarawak government and Petronas have seen eye-to-eye on the establishment of a consultative framework to facilitate, monitor and ensure the state’s commercial standing in the O&G industry.

The signing of the Commercial Settlement Agreement this morning would ensure Sarawak’s interests will be given the utmost consideration by Petronas in its decision-making process especially pertaining to the management of the offshore petroleum operations.

“Whilst Petros (Petroleum Sarawak Berhad) will be given authority to manage and carry out onshore petroleum operations, Petronas will provide access to Petros, data gathered from its past petroleum development efforts, so that the potential of the petroleum resources could be realised.

“The signing of this Commercial Settlement Agreement will herald the revival of onshore mining in Sarawak-the only place in Malaysia where upstream petroleum activities is taking place,” he said.


Abang Johari, Awang Tengah and Muhyiddin (from left to right) having a lively chat on the way to the signing ceremony of Commercial Settlement Agreement. Graphics courtesy of Bernama.

Among Sarawak’s expectations embedded in the terms of the Commercial Settlement Agreement is for the state government to have a greater degree of involvement in the management of the state’s oil and gas resources both onshore and offshore.

Sarawak now, gets to enjoy a more equitable share of the revenues from these resources, and be accorded with greater investment opportunities in both upstream and downstream sectors.

Awang Tengah, as the chief negotiator in the consultative committee said the Commercial Settlement Agreement which is duly recognised by the federal government and Petronas would also secure availability of natural gas produced in the state at fair prices to boost the state’s industrial development agenda.

“It is also for Petronas to continue and expand its current vendor development programmes as well as to provide more opportunities for Sarawak companies to participate in the oil and gas sectors such as in the award of contracts for supply and services works.

“All these are undeniably the legitimate expectations of the people of Sarawak,” he said during the signing ceremony of the Commercial Settlement Agreement between the Sarawak government and Petronas at Hilton Hotel here today.

The signing of the Commercial Settlement Agreement was also witnessed by Chief Minister Datuk Patinggi Abang Johari Tun Openg and Prime Minister Tan Sri Muhyiddin Yassin. — DayakDaily

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