KUALA LUMPUR: The negotiations between Petroliam Nasional Bhd (Petronas) and Petroleum Sarawak Bhd (Petros) will not undermine the country's economic stability, said Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
She said while the impact of the negotiations on Petronas' financial standing would only be known once the decision had been finalised, all parties involved would ensure that the decision reached preserved the interests of the country.
"To date, negotiations between Petros and Petronas are ongoing. The impact on Petronas' financial position will only be known once a final decision from these negotiations is reached.
"However, all parties involved are working to ensure that the decision made will safeguard the interests of the country and not undermine economic stability."
She said this in a written reply to a question from Ahmad Fadhli Shaari (PN-Pasir Mas), who asked the impact that Petros' takeover of the oil and gas trading and acquisition activities in Sarawak had on Petronas' financial position.
On July 28, Sarawak Premier Tan Sri Abang Johari Openg said the state government had set an Oct 1 deadline for Petronas to resolve the gas distribution issue with Petros.
The state had decided that Petros would take over control of gas purchasing and selling in Sarawak from July 1. However, Petronas requested a delay, citing potential disruptions to gas distribution for liquefied natural gas plants in Bintulu.
The state government agreed to a three-month extension, moving the deadline to Oct 1.
It is understood that Petronas subsequently requested an additional three-month extension.
On Sept 24, the state government, Petros and Petronas issued a joint statement indicating that discussions on gas distribution in the state would soon conclude.