Petronas doesn’t plan to slash Sabah O&G production, says govt

 Law and institutional reform minister Azalina Othman Said says production isn't solely determined by short-term changes in the global price of oil.

Law and institutional reform minister Azalina Othman Said said the management of Petronas’s O&G production is based on technical and commercial aspects as well as long-term planning. (Reuters pic)

PETALING JAYA:

 Petronas has no plans to cut down on its oil and gas (O&G) production in Sabah, says law and institutional reform minister Azalina Othman Said.

She said the management of Petronas’s O&G production, including in Sabah, was based on technical and commercial aspects as well as long-term planning.

She added that it was not solely determined by short-term changes in the global price of oil.

“Therefore, although the global O&G industry faces a drastic decline in prices, Petronas does not plan to reduce its O&G production in Sabah.

“This takes into account the long-term need to ensure the security and sustainability of the nation’s energy supply, industry stability, and to generate revenue for the country and oil-producing states,” she said in a written parliamentary reply.

However, Azalina said the federal government and Petronas always monitored oil price developments closely, including the impact on the national O&G industry.

She was replying to Jeffrey Kitingan (GRS-Keningau), who asked if the government and Petronas plan to reduce O&G production in Sabah to conserve resources following a decline in global oil prices. - FMT