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

Inpex Secures Environmental Approval for Indonesia’s Abadi LNG Project

Malaysia Oil and Gas Projects Advance with Petronas' PSC and Farm-Out Deals

QatarEnergy, Petronas Ink 20-Year LNG Supply Agreement

Conrad, Empyrean Agree Settlement Framework Over Duyung PSC Interests

JERA Lifts First LNG Cargo From Barossa Gas Project in Australia

Seadrill Firms Up Offshore Drilling Workload with Multi-Region Contract Awards

India Seeks $30B from Reliance, BP Over Gas Shortfall at Offshore Fields

CNOOC Launches New Offshore Oil Development in Southern China

CNOOC Puts New South China Sea Development Into Production Mode

PTTEP Orders OneSubsea Systems for Two Deepwater Projects off Malaysia

Current News

Inpex Secures Environmental Approval for Indonesia’s Abadi LNG Project

MISC Secures Long-Term Charter for Papua New Guinea's First FSO

Dolphin Drilling, Vantris Ink Marketing Deal for Blackford Dolphin Semi-Sub

Saipem Agrees $272M Deal to Acquire Deep Value Driller Drillship

DUG Hooks Multi-Client Seismic Reprocessing Survey off Malaysia

MISC, PTSC Extend Ruby II FPSO Operations Offshore Vietnam

Petronas Takes Operatorship of Oman’s Offshore Block 18

Mubadala Hires SLB for Deepwater Drilling Services Offshore Indonesia

Malaysia Offers Nine Exploration Blocks in 2026 Bid Round

Seatrium Unit Launches Arbitration Against Petrobras over FPSO Contract

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