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

Pakistan Greenlights TPOC-Led Offshore Exploration in Block-C

Seatrium Maintains $12.8B Order Book on Renewables and FPSO Progress

Petrobras’ New FPSO Sets Sail From South Korea to Brazil's Santos Basin

ABL to Support Platform Installations, Rig Moves for Chevron in Gulf of Thailand

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

ABL Secures Rig Moving Assignment with India's ONGC

CNOOC Brings New Offshore Gas Field On Stream

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Current News

Blackford Dolphin Semi-Sub to Keep Drilling Offshore India

Aramco Expands US Partnerships with $30B in New Deals

Pakistan Greenlights TPOC-Led Offshore Exploration in Block-C

TechnipFMC to Supply Subsea Systems for Eni’s Maha Deepwater Project

SED Energy’s GHTH Rig Kicks Off Ops for PTTEP

MODEC Forms Dedicated Mooring Solutions Unit

Seatrium Maintains $12.8B Order Book on Renewables and FPSO Progress

Petrobras’ New FPSO Sets Sail From South Korea to Brazil's Santos Basin

Eneos Warns on Skyrocketing Costs fo Offshore Wind

Mooreast to Assess Feasibility of Floating Renewables Push in Timor-Leste

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