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

Valeura Boosts Production at Jasmine Field with Five New Wells Now Onstream

MCDermott Gets Pipelines and Cables Job at Qatar's Giant Gas Field

Nong Yao C Development Bolsters Valeura’s Production Rates Off Thailand

TotalEnergies Extends LNG Supply Agreement with CNOOC Until 2034

CNOOC Maintains Steady Oil Production as Bebinca Typhoon Crosses East China Sea

Chinese Demand Spurs Global Wind Turbine Ordering

New Partner Joins Timor-Leste Offshore Gas Development

CNOOC Posts Record Interim Profit

Izomax Wins a Milestone Contract with Shell

Inside Asia-Pacific’s Offshore Energy Boom

Current News

Offshore Service Vessels: What’s in Store in 2025

ABS Approves Hanwha Ocean’s FPSO Design

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Floating LNG Conversion Job Slips Out of Seatrium’s Hands

Transocean’s Drillship to Stay in India Under New $111M Deal

INEOS Picks Up CNOOC’s US Assets in $2B Deal

Sunda Energy, Timor-Leste Gov Plan Accelerated Chuditch Gas Development

RINA to Conduct Pre-FEED Study for Petronas’ CCS Project in Malaysia

TotalEnergies Wraps Up Acquisition of SapuraOMV’s Gas Assets

Kuwaiti Oil and Gas Firm Exploring More Opportunities in Indonesia's Natuna Sea

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