Sarawak State to Sue Petronas over Sales Tax

Thursday, June 11, 2020

Malaysia's energy-rich Sarawak state will pursue legal proceedings against national oil company Petronas over the non-payment of sales tax, backtracking on a settlement agreement reached last month, national news agency Bernama reported.

Petronas and Sarawak had reached a settlement in May, with the energy company agreeing to pay 2 billion ringgit ($470 million) in back sales taxes, and Sarawak agreeing to drop a civil lawsuit it filed last year to seek the funds.

A Sarawak state body said on Wednesday, though, that the state would continue its civil case against Petronas if no final decision was reached through further negotiations on the tax payments with the company, Bernama reported.

The joint statement issued by Petronas and the state in May regarding the settlement was not a "formal agreement", Bernama reported, citing Amar Mohd Asfia Awang Nassar, the chairman of the Sarawak state assembly consultative committee.

"It was a statement based on discussions back then, and today, I am making it clear that we will continue our civil case against Petronas," said Amar Mohd Asfia.

Petronas did not immediately respond to questions from Reuters on the reported comments of the state official.

Sarawak took Petronas to court in November, saying the national oil company was the only energy company operating in the state that had not paid the 5% state sales tax that was imposed on Jan. 1, 2019.

Malaysia's Sarawak and Sabah states - both located on Borneo island and holding much of the nation's oil and gas reserves - have long asked for higher royalties from Petronas.

Petronas is sole manager of Malaysia's energy reserves and a significant revenue source for its only shareholder, the federal government.

($1 = 4.2430 ringgit) (Reporting by A. Ananthalakshmi; Editing by Tom Hogue)

Categories: Energy Industry News Activity Asia Regulations Malaysia

Related Stories

Eni Inks Long-Term Indonesia LNG Supply Agreements

Indonesia Signs Eight Oil and Gas Contracts

Inpex Inks Abadi LNG Gas Supply Deal With Indonesian State Firms

Energean Cuts 2026 Output Forecast After Israel Shutdown

Yinson Production, PTSC Raise Over $130M for Vietnam’s Block B FSO

PV Drilling Secures Jack-Up Rig Deal from Zarubezhneft off Vietnam

Iraq, Pakistan Secure Oil Shipments via Hormuz with Iran Agreements

Dolphin Drilling Boosts Backlog with Harbour Energy Deal, Oil India Extension

Oil Jumps 4% After Trump Rejects Iran’s Peace Response

Gulf Marine Services Profit Plunges After Gulf Vessel Evacuations

Current News

Eni Inks Long-Term Indonesia LNG Supply Agreements

Indonesia Locks In LNG Supplies from Inpex' Abadi and Eni’s South Hub

Wood Secures Subsea Design Scope on QatarEnergy’s Bul Hanine Redevelopment

Oil Prices Rise as Iran Talks Stall and Inventories Shrink

Indonesia Puts 13 Oil And Gas Blocks on Bidding Round Offer

BP Adds Three Exploration Blocks off Indonesia

Indonesia Signs Eight Oil and Gas Contracts

Inpex Inks Abadi LNG Gas Supply Deal With Indonesian State Firms

Energean Cuts 2026 Output Forecast After Israel Shutdown

Wison Starts Topsides Fabrication for Türkiye’s Sakarya Deepwater FPU

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