KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) says it is currently engaged in discussions with both the state and federal governments, as well as Petroleum Sarawak Bhd (Petros) to reach a mutual resolution regarding the gas distribution in Sarawak.
Petronas emphasised the importance of all parties understanding and acknowledging each other's constraints to achieve a satisfactory outcome.
"Petronas will continue to be a strategic partner to Sarawak to preserve a thriving and conducive investment climate in Malaysia," the group told the Business Times.
RHB Research recently said it expected potential operational disruptions in the near term until there was more clarity or a clear resolution between Petros and Petronas.
This comes after news that Petros would take over the trading activities of natural gas produced in the state from Petronas, with the transition starting in the second half of this year.
RHB Research said there had been increasing talk about potential capital expenditure (capex) cuts by Petronas since the announcement.
"The earnings impact on Petronas remains uncertain but may affect its ability to spend, notwithstanding that it has committed to paying a sizeable dividend to the federal government.
"While we may see some potential operational disruption in the near term, we still assume a resolution to be achieved between these two involved parties without jeopardising existing productions and future domestic investments to capture the rising global gas demand," it added.