The Sarawak state government has accused national oil corporation Petroliam Nasional Bhd (Petronas) of flouting its laws, deepening a worsening spat that has already triggered foreign investor disquiet in a sector key to the Malaysian economy.
Sarawak’s Utility and Telecommunications Ministry issued a letter on Wednesday (Apr 30) to Petronas Carigali Sdn Bhd, a wholly owned subsidiary of the Malaysian oil giant, stating that it was operating the coastal Miri Crude Oil Terminal (MCOT) facility in the state without a licence, as required under Section 7(e) of its Distribution of Gas Ordinance.