Petronas offers state 10 per cent stake in MLNG 4

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KUCHING: Petronas has agreed to offer the state government ten per cent stake in Malaysia Liquefied Natural Gas Sdn Bhd (MLNG) 4.

The offer is a result of the state’s negotiation with Petronas to increase its participation in the oil and gas industry and request for oil royalty increase from the present five per cent to 20 per cent.

This was announced by Chief Minister Tan Sri Datuk Amar Adenan Satem at a press conference after attending the PBB Ramah Tamah Aidilfitri celebration at a leading hotel here last night.

“Petronas has agreed to originally offer us five per cent in MLNG 4 but they have now agreed to increase to ten per cent. This is some progress and we will continue with our negotiation and I will brief from time to time on our progress,” Adenan said.

He added the state government and Petronas had formed a committee consisting of senior state government officers and senior executives of Petronas to work out ways to make the state’s participation in the oil and gas industry in the state’s waters more meaningful.

“There will be a main committee and five sub-committees on royalty, gas, corporate social responsibility, contracts and other matters,” he announced.

Asked on when MLNG 4 would commence, he said it would start very soon but “not likely this year”.

He added that the cost of the state’s stake in MLNG 4 will be calculated but was currently still under negotiation.

“But in principle, it is agreed that we have ten per cent,” he reiterated.

Also present at the press conference were Housing Minister Datuk Amar Abang Johari Tun Openg, Deputy Home Minister Datuk Wan Junaidi Tuanku Jaafar and Assistant Minister in the Chief Minister’s Office (Islamic Affairs) Datuk Daud Abdul Rahman.