KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) will continue to serve as a strategic partner to Sarawak, said Petronas president and group chief executive officer Tengku Tan Sri Muhammad Taufik.
Tengku Muhammad Taufik emphasised the importance of mutual recognition of aspirations and duties between Petronas and Sarawak, noting that both parties are engaged in ongoing discussions to strengthen their collaboration.
"We want to continue being a partner to Sarawak. I understand there have been questions about where the negotiation is heading, but our aim is to build a win-win partnership," he said at a press conference in conjunction with the release of Petronas' first half-ended June 30, 2024 results.
Tengku Muhammad Taufik also reiterated that Petronas' role extends beyond its corporate interests, emphasising the company's responsibilities to the nation.
"Because ultimately, as I outlined over and again in this presentation, Petronas has a role not only as a company but for the country.
"And we always act in the country's best interests. I cannot act or want to negotiate without considering the implications to the country," he stressed.
*Dividend policy effected?*
When asked whether the dividend to the government would be affected by the negotiations, he said that Petronas' dividend policy is always to ensure it is implemented.
"We make our investments and fulfil our debt obligations. If there is a change in the administrative structure, it will result in a transfer of value.
"It is Petronas' cash flow that ultimately determines our ability to pay dividends.
"I think, so far, the implications and decisions will depend on the outcome of the ongoing negotiations," he said.
*Operations continue amidst China's objections*
In addition, Tengku Muhammad Taufik also addressed the ongoing operations in waters off Sarawak, following China's demand for Malaysia to immediately halt activities in the area.
Despite the external pressure, Tengku Muhammad Taufik stressed that Petronas remains committed to its operations in Malaysia's territorial waters.
"Petronas' ability to conduct explorations in our sovereign waters is something that we believe is according to law and under the watchful guidance of the government, as well as under the purview of the National Security Council.
"This is under the 1979 map," he added.
According to a news report, China had issued a formal protest, demanding Malaysia cease all operations in an oil-rich area off the coast of Sarawak.
The demand was reportedly delivered via a protest note sent to the Malaysian embassy in China last week.