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

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Indonesia Tenders Eight Oil and Gas Blocks as Output Declines

Fugro Nets Mubadala Energy’s Deepwater Gas Job in Asia

EnQuest Set to Top 2025 Production Forecast on Southeast Asia Gains

Velesto Agrees $63M Jack-Up Drilling Rig Sale with Indonesian Firm

TotalEnergies Sells Stake in Malaysia’s Block to Thailand’s PTTEP

Petronas Enlists MISC for FPU Job at Gas Field Offshore Brunei

MODEC Forms Dedicated Mooring Solutions Unit

MDL Secures Cable Laying Job in Asia Pacific

Current News

OceanMight Gets Petronas’ Offshore Construction Job in Malaysia

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Jereh Group Delivers Oil Separation Systems for Petrobras’ FPSO Units

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Offshore Energy and Boosting the Energy Efficiency of Water Processes

Low Demand, High Supply Keeps Asia LNG Spot Prices Flat

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