Premier confident in fair wealth distribution as PETRONAS-Petros talks aim for win-win deal

Datuk Patinggi Tan Sri Abang Johari Tun Openg. Photo: Jabatan Penerangan Sarawak
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By DayakDaily Team

KUCHING, March 29: Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has expressed confidence that ongoing discussions between Petroliam Nasional Berhad (PETRONAS) and State-owned Petroleum Sarawak Berhad (Petros) will result in a win-win outcome, ensuring a fair distribution of wealth between the Sarawak government and the federal government.

He emphasised that Sarawak has played a pivotal role in strengthening the national economy, contributing 10 per cent to the Gross Domestic Product (GDP) through its oil and gas resources.

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Since 2019, Sarawak has benefited further from its natural resources by imposing a 5 per cent State Sales Tax (SST) on petroleum products, securing additional revenue beyond the 5 per cent royalty it previously received.

Furthermore, the Commercial Agreement between PETRONAS and Petros has provided Sarawak with a 50-50 profit-sharing arrangement through PETRONAS Carigali, reinforcing the Sarawak’s stake in its oil and gas industry.

“Recently, Sarawak was recognised as the Sole Gas Aggregator under the Distribution of Gas Ordinance (DGO) 2016, with the approval of the Prime Minister (Datuk Seri Anwar Ibrahim).

“While the matter is complex and requires detailed agreements, I am confident that PETRONAS and the Sarawak government, through Petros, will work towards an equitable resolution,” he said in his Hari Raya message today.

The Premier emphasised that Sarawak remains committed to optimising its natural gas resources for local economic growth.

Under the Sarawak Gas Road Map, he highlighted that four gas hubs have been identified in Bintulu, Samalaju, Miri, and Kuching, where downstream activities and bunkering services for the maritime industry will be expanded.

He also noted the progress of downstream activities in Tanjung Kidurong, Bintulu, where Sarawak’s first methanol plant—boasting an annual production capacity of 1.8 million metric tonnes—has commenced operations.

“A second facility is in development to process natural gas into ammonia, a key component in hydrogen gas production for export, particularly to Japan,” he shared.

On a broader note, Abang Johari stressed that unity and mutual understanding among Sarawak’s multiracial communities are fundamental to Sarawak’s development.

He called for continued collaboration and sustainable growth, ensuring Sarawak’s prosperity in the face of evolving challenges.

“In this auspicious season, I pray that harmony and unity among Sarawakians remain strong. Our focus must be on building a progressive and sustainable future for the state,” he said.

Concluding his remarks, he extended festive greetings, saying, “On behalf of myself and Puan Sri Datuk Amar Juma’ani, I wish all Muslims in Sarawak and across the nation Selamat Hari Raya Aidilfitri.” — DayakDaily

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