{
  "id": 11882905,
  "title": "Petros assurance rings hollow amid challenge to Petronas, says Zaid",
  "url": "https://urgent.news/2026/10/04/petros-assurance-rings-hollow-amid-challenge-to-petronas-says-zaid",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-04T08:02:45.000Z",
  "source": {
    "name": "Malay Mail",
    "slug": "malay-mail",
    "url": "https://www.malaymail.com/news/malaysia/2026/10/04/petros-assurance-rings-hollow-amid-challenge-to-petronas-says-zaid/237664"
  },
  "original_language": "en",
  "account": "Former Sarawak premier Abang Johari Openg has assured that Petros will not undermine Petronas, but former law minister Datuk Zaid Ibrahim says this assurance is empty considering Petronas' quest for a greater role in the gas business and ongoing disputes over the petroleum legal framework in Sarawak. In a Facebook post, Zaid emphasized that Petros' aim to assume Petronas' gas aggregator role in Sarawak, which is crucial to the gas value chain, is a cause for concern. He calculated that this role generates around RM10 billion annually for Petronas in the region. The issue has already caused confusion in payment disputes, with a recent example being the Shell disagreement where around RM80 million a month was withheld while parties debated payment rights. Abang Johari had previously stated that Petros' expansion was not intended to replace Petronas and that Sarawak would continue working together with Petronas while enhancing local gas processing and shifting towards more lucrative downstream activities. These plans were demonstrated by Petros' joint venture with Norwegian firm Höegh Evi to establish a Kuching LNG regasification terminal expected to be completed by 2029. Sarawak is also investigating small-scale LNG facilities and carbon capture, utilization, and storage projects. Zaid stressed that these ambitions do not have to be contradictory to Sarawak's development, but the order of discussion is significant. The state must first acknowledge Petronas' rights over Malaysia's oil and gas under the Petroleum Development Act 1974. He noted that Sarawak is challenging the application of the PDA and other federal petroleum laws in the state, which he claimed is a challenge to Petronas' legal foundation rather than a regular commercial negotiation. Zaid concluded by warning that if other producing states follow suit with similar claims, Petronas risks losing its scale which supports its national role, including its investment capacity and contribution to federal revenue.",
  "summary": "KUALA LUMPUR, Oct 4 — Former law minister Datuk Zaid Ibrahim says Sarawak premier Abang Johari Openg’s...",
  "key_points": [
    "Petros aims to assume Petronas' gas aggregator role in Sarawak, generating RM10 billion annually.",
    "Sarawak challenges Petronas' legal foundation in the Petroleum Development Act 1974."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}