Malaysia's state-owned Petronas has agreed to grant Sarawak a larger share of revenues from oil and gas produced in the state, just weeks after posting a 3.38bn ringgit loss ($830mn) for July-September.
Petronas and Sarawak have agreed to a commercial settlement "after having resolved their differences over the imposition of state sales tax on petroleum products as well as oil and gas matters".
The agreement also gives Sarawak more involvement in its oil and gas industry through management of onshore oil and gas resources via its state-owned energy firm Petros, as well upstream investments by Petros in offshore areas.
Other details of the higher revenue share deal were undisclosed. But Petronas and the state government "remain committed to working together to create and maintain a stable, conducive business and investment environment for the sustainable growth of the oil and gas industry" in Sarawak, Malaysia's biggest oil-producing state.
Petronas in September paid Sarawak more than 2bn ringgit in sales taxes on oil products for 2019, following a lengthy dispute that led to the firm's former chief executive Wan Zulkiflee Wan Ariffin stepping down.
