SINGAPORE (Sept 9): Sarawak government subsidiary Petroleum Sarawak Bhd (Petros) is still in discussions with Petroliam Nasional Bhd (Petronas) regarding the supervision of oil and gas trading in the state, said Sarawak Premier Tan Sri Abang Johari Tun Openg.

Addressing reports that the discussions had hit an impasse, Abang Johari said the deadline for the discussions between the two companies remains set for before Oct 1.

“Petros will collaborate with Petronas in the development of both upstream and downstream activities. That's why I say it (media) could be misinformed, or had wrong data or wrong input for the last two days,” he told reporters on the sidelines of the APPEC 2024 conference here on Monday.

He emphasised: “There is no issue between us and Petronas.”

Asked to comment on media reports of possible legal actions by Petronas, Abang Johari said, “We don't know. That one, you have to ask Petronas.”

He also reassured that long-term contracts on liquefied natural gas (LNG) with partners like South Korea and Japan will not be affected, even as Petros becomes the sole gas aggregator in Sarawak.

“Nothing is happening. You must remember that the Sarawak government has equity in LNG, and because we have a vested interest in LNG, I don't think we want to destroy it. So, the current contracts we have with our customers remain intact," he said.

He also acknowledged concerns within the industry about potential disruptions to gas supply if Petros assumes the aggregator role, but reassured stakeholders: “This will not happen. We have interests in both upstream and downstream operations, so the supply of LNG will continue as usual,” he said.