KUALA LUMPUR (Reuters) -Malaysia’s state-owned energy firm Petronas said on Friday its subsidiary Petronas Carigali had received notices from the Sarawak state government about its activities in the state, with local media reporting it does not have proper permits.
Petronas said the notices regarded its gas processing and distribution rights, but did not give other details.
Local media said the state had told Petronas the subsidiary was operating its Miri Crude Oil Terminal without a proper licence. The reports said the state has given Petronas Carigali 21 days to obtain the required license or face financial penalties under local state law.
Negotiations between Petronas and Petros, Sarawak’s state-run energy firm, stalled last year, heightening oil sector uncertainty over operations and investments in the state.
The impasse has raised concerns about the potential impact on Petronas’ revenues, a major source of income for the federal government. Sarawak is home to more than 60% of Malaysia’s gas reserves.
Petronas said its subsidiary is authorised under federal law to undertake activities for the parent company and comply with all applicable laws. As such, Petronas said it has a duty to uphold the federal law and safeguard national interests.
“Petronas will continue to engage constructively and work closely with the federal government, Sarawak government, and Petros in exploring future arrangements to ensure regulatory clarity and operational continuity for the benefit of the industry, state, and nation as a whole.
“We are also committed to ensuring that the rights and interests of all parties, including end-consumers and investors, are addressed accordingly,” it said.
The Sarawak state government declined to comment.
(Reporting by Ashley Tang and Danial Azhar; Editing by Martin Petty and Kim Coghill)
