Malaysia’s Sarawak to drop demand for Petronas royalty hike


Dateline 2019-10-30, Reuters:

Malaysia’s energy-rich state of Sarawak will drop a demand for quadrupling royalties paid by energy giant Petronas but is pushing for production-sharing and other agreements, a key negotiator told Reuters on Wednesday.

Sarawak and neighbouring Sabah possess Malaysia’s most prolific oil and gas reserves in their waters in the South China Sea.

Their longstanding royalty demand would cost government-owned Petronas up to $7 billion a year, according to a rough calculation by a person aware of the matter.

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