Sarawak Seeks to Recoup Tax from Petronas

Thursday, November 21, 2019

Malaysia's state of Sarawak filed a writ summons and statement of claim against national energy firm Petroliam Nasional Bhd on Thursday to recover taxes owed, according to media reports.

National news agency Bernama reported that the company, better known as Petronas, was said to be the only oil and gas company operating in the state that had not paid the 5% state sales tax imposed at the start of this year.

Sarawak Assistant Minister in the Chief Minister's Department Sharifah Hasidah Sayeed Aman Ghazali said the court action was taken to recover the state sales tax owed by Petronas.

"As a result, the state government is left with no choice but to commence legal action for the recovery of the unpaid taxes due," Sharifah said in a statement reported by Bernama.

The statement did not mention the amount the state was seeking from Petronas, according to the Bernama report.

Petronas, which manages Malaysia's oil and gas reserves, did not immediately respond to questions from Reuters.

Reuters reported last month that Sarawak would drop a demand for a quadrupling of the royalties paid by energy giant Petronas, but was pushing for production-sharing and other agreements.

Prime Minister Mahathir Mohamad had said that his ruling coalition's election manifesto pledge of increasing royalties to the states to 20% was not workable and could "kill" Petronas, the world's third largest exporter of liquefied natural gas and Malaysia's biggest cash earner. Raising the royalty payments could have crippled its expansion program.


(Reporting by Liz Lee; Additional reporting by A. Ananthalakshmi; Editing by Alex Richardson)

Categories: Legal Finance Industry News Production Asia Regulations

Related Stories

FPSO for Azule Energy’s Angola Offshore Field Starts Taking Shape in China

Borr Drilling's Mexican JV Expands Fleet with Five Jack-Ups

Keppel Launches $2.9B Program to Monetize Legacy Offshore Drilling Rigs

Eni-Petronas JV Starts Indonesia-Bound FPSO Construction

QatarEnergy Prolongs LNG Force Majeure, Charters Out Tankers

Oil Rises 2% as Middle East Hostilities Escalate

EnQuest Clears Key Hurdle for $833M Malaysia Offshore Deal

Markets: Oil Majors Reload Exploration Hoppers Across Sub-Saharan Africa

Yinson Production Names FSO for Murphy's Lac Da Vang Project off Vietnam

Oil Slumps as US-Iran Reach Initial Peace Deal to Reopen Strait of Hormuz

Current News

ADNOC, SLB Roll Out AI Platform Across More Than 120 Drilling Rigs

Oil Rises as Uncertainty Clouds US-Iran Peace Talks

India’s ONGC to Allocate Half of New Oil Storage to Strategic Reserves

Subsea7 Lands ‘Sizeable’ Contract for Work Offshore Brunei

FPSO for Azule Energy’s Angola Offshore Field Starts Taking Shape in China

Borr Drilling's Mexican JV Expands Fleet with Five Jack-Ups

Keppel Launches $2.9B Program to Monetize Legacy Offshore Drilling Rigs

Saipem Cuts Earnings Outlook as Middle East Costs Rise

Serica Energy Agrees $194M Pharos Energy Acquisition

Oil Eases After Topping $100, Still Set for Weekly Rise

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com