KUCHING – The commercial agreement between Petroleum Sarawak Berhad (PETROS) and Petroliam Nasional Berhad (PETRONAS) is anticipated to be finalised early next year, following ongoing discussions and exchanges of correspondence between the two companies.
Deputy Prime Minister Datuk Amar Fadillah Yusof confirmed that while progress has been made, the matter is still awaiting a final decision. He cautioned that if no agreement is reached, the issue may ultimately need to be resolved through the courts, a scenario the government hopes to avoid.
“We hope an agreement can be achieved because if it goes to court, it may not be a win-win solution and could even result in losses for all parties,” he told reporters after a forum session held during the 2026 Sarawak Budget Conference at the Borneo Convention Centre Kuching (BCCK) on Tuesday.
Datuk Amar explained that the commercial agreement process was initiated following consensus between Prime Minister Dato’ Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg.
The approach, he said, is designed to avoid lengthy and complex legal proceedings by encouraging both parties to cooperate directly.
He emphasised that PETROS and PETRONAS must examine all possible areas of collaboration to ensure mutual benefit. “Ultimately, this will benefit not only the country but also the business community. This win-win approach is what we have agreed upon,” he added.
The Deputy Prime Minister reiterated that the government’s priority is to ensure that agreements reached are implemented effectively, reflecting Sarawak’s aspirations for greater participation in the oil and gas sector.
Also present at the forum was Minister of Finance II Senator Datuk Seri Amir Hamzah Azizan, who joined discussions on fiscal and economic strategies during the budget conference.
The pending agreement between PETROS and PETRONAS is seen as a significant step in strengthening Sarawak’s role in Malaysia’s energy sector, with potential implications for both state and national economic development.
