Petronas boosts payments to Malaysia as oil prices surge

Petronas, Malaysia's state-owned oil and gas company, plans to increase its payments to the Malaysian government by 19% next year, reflecting the impact of higher energy prices on the firm's profitability. The revised commitment of 32 billion ringgit (US$7.8 billion) to state revenue in 2027 surpasses the initial pledge of 20 billion ringgit, underscoring the positive conditions for Petronas after a period of declining earnings.

The surge in oil prices, driven by the US war with Iran and brent crude surpassing US$100 per barrel, has contributed to this upward revision. Despite Malaysia's efforts to reduce its reliance on oil and gas, petroleum-related proceeds for 2027 are projected to account for 16.1% of the government's revenue, up from 15.1% this year.

Brief written by urgent.news from Free Malaysia Today's own syndicated text. Machine-written — may contain errors; check the original before relying on it.