Petronas-Petros deal still up in the air, says analyst
Economist Harridon Suffian warns that the ongoing dispute between Petronas and Petroleum Sarawak (Petros) regarding oil and gas control remains unresolved despite reports of a potential settlement. Key issues concerning resource management and financial returns continue to stall negotiations.
Why it matters
The resolution of this dispute is critical for Malaysia's energy sector and the economic relationship between the federal government and Sarawak.
The existence of pending cases in the Federal Court shows that Petronas and Petros have yet to resolve several underlying legal and commercial issues, an economist said.
PETALING JAYA: Recent indications that Petronas and Petroleum Sarawak Bhd (Petros) may be edging closer to resolving their long-running dispute should be treated with caution, says economist Harridon Suffian.
Last month, The Edge reported that the feud would likely be settled soon, citing sources familiar with the matter.
However, Harridon, of Universiti Kuala Lumpur, said the core issues, namely the extent of Sarawak’s control over oil and gas resources and the financial returns due to the state, have yet to be resolved.
He said that over the past two years, repeated claims have surfaced suggesting the dispute was either resolved or that a resolution was imminent.
Harridon Suffian.
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