Petronas-Petros deal will have implications on O&G industry, broader economy, say analysts

Free Malaysia Today

They say the deal over gas governance in Sarawak must allow Putrajaya to preserve national security and investor confidence.   Read More:  https://www.freemalaysiatoday.com/category/nation/2025/04/15/petronas-petros-deal-will-have-implications-on-og-industry-broader-economy-say-analysts/   Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/04/15/rundingan-petronas-petros-beri-kesan-meluas-ke-atas-industri-og-ekonomi/   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews #Petronas #Petros #Sarawak

Transcript

00:00Experts are weighing in on the still-unresolved Petronas Petroleum-Sarawak-Berhart gas deal,

00:07warning it could have wide-reaching effects on Malaysia's island gas industry and the economy.

00:13Jamil Ghani, a former analyst with the Malaysia Petroleum Resources Corporation,

00:18said that while Prime Minister Anwar Ibrahim assured Parliament on February 17

00:22that existing Petronas contracts would remain valid,

00:25the Sarawak government added a caveat the very next day.

00:29Petronas contracts must not undermine Petros' role or contradict the state's distribution of Gas Ordinance 2016.

00:36Jamil said this shift introduces major operational and financial risks for Petronas,

00:41whose long-term contracts with countries like Japan, South Korea and Taiwan

00:46are priced based on fixed assumptions about gas volumes and margins.

00:50He said involving Petros as a middleman could drive up costs,

00:54forcing renegotiations and threatening profitability,

00:57especially since Petronas must now supply Sarawak with 1.2 billion cubic feet of gas daily,

01:03nearly triple the current amount.

01:05Jamil added that over 3,000 local oil and gas services companies, 90% reliant on Petronas,

01:11could suffer, and weakening Petronas would reduce government dividends

01:15and shake up industries dependent on cheap energy.

01:18Meanwhile, University of Tasmania's James Chin said the deal could strengthen ties

01:23between the federal government and the state's ruling coalition, Gabungan Parti Sarawak,

01:27especially after past resistance under Dr. Mahathir Mohamad's administration.

01:31However, Sunmi University's Shakila Yacob warned that the dispute could be exploited by China,

01:37who's asserting its presence near Sarawak

01:39and stressed the importance of balancing state autonomy with national cohesion.

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