KUALA LUMPUR (Dec 7): The strategic collaboration between the Sabah state government and Petroliam Nasional Bhd (Petronas) on issues related to the oil and gas (O&G) industry in Sabah will have a more comprehensive economic spillover effect in the state, Prime Minister Datuk Seri Ismail Sabri Yaakob said.
According to him, the agreement signed will also enable the state government to play a greater role in developing the O&G industry through a close partnership with Petronas.
"In addition, it will open up more business opportunities for local companies to be involved in the O&G services industry in Sabah," he said in a press statement on Tuesday regarding the commercial collaboration agreement Sabah and Petronas signed on Tuesday in Kota Kinabalu.
Ismail Sabri added that at the same time, Petronas will continue to play a role as a national petroleum company with full authority in regulating the development of the O&G industry as a whole, in accordance with federal laws.
"The successful collaboration truly symbolises the federal government's commitment to working with the Sabah government to ensure inclusive development so that the benefits of national development can be enjoyed together more fairly and equitably."
In a separate joint statement by the Sabah government and Petronas, it said Sabah through its nominated state-owned entity would have the opportunity to increase its participation in upstream petroleum arrangements including in partnership with Petronas Carigali Sdn Bhd, the wholly owned subsidiary of Petronas, as well as in the midstream and downstream O&G businesses in the state.
"The signing of this agreement marked a new chapter of a closer collaboration between the Sabah state government and Petronas.
"Towards achieving this objective, a consultative framework will be established whereby both parties will jointly engage on matters of importance to the industry to maintain a sustainable, conducive business, and investment environment for the benefit of the state and the nation," it said.