Sarawak, Petronas to sign Commercial Settlement Agreement on Dec 7

DUN Complex and Petronas

KUCHING, Dec 3:  Chief Minister Datuk Patinggi Abang Johari Tun Openg and Prime Minister Tan Sri Muhyiddin Yassin will witness the Commercial Settlement Agreement between the Sarawak Government and Petronas on Dec 7, 2020.

This follows after extensive discussions between the Sarawak government, the Ministry of Finance and Petronas where all have agreed to the terms of the commercial settlement.

The Sarawak government will be represented by the State Secretary Datuk Amar Jaul Samion, while Petronas will be represented by its Chairman Tan Sri Ahmad Nizam Salleh. 

The details of the Commercial Settlement Agreement will be released after the Agreement is formally signed.

“The Consultative Committee at its meeting today was informed of the scope, and salient features and terms of the Commercial Settlement and the significant benefits and advantages which the State would derived from the Agreement,” said Consultation Committee chairman Datuk Amar Mohd Asfia Awang Nassar in a press statement today.

The Malaysia Agreement 1963 Consultative Committee was briefed on the Commercial Settlement Agreement reached between the Sarawak government and Petronas.

The briefing was conducted by representatives of the Sarawak government involved in the negotiations with Petronas.

In May 2020, the federal government, the Sarawak government and Petronas agreed that the issues relating to the imposition of State Sales Tax and Sarawak’s decision to regulate oil mining in Sarawak under Sarawak’s laws should be resolved without going through the legal process.

The legal actions commenced by Petronas and the Sarawak government were withdrawn in August this year. 

The federal government formed a Joint Committee headed by the Senior Minister for Works Datuk Seri Fadillah Yusof and the Minister of Finance Tengku Datuk Seri Zafrul Abdul Aziz to facilitate the discussions between the Sarawak government and Petronas.— DayakDaily