Ahmad Fadhli Shaari (PN-Pasir MAS) said there is a need for transparency as to how the move will impact the nation’s coffers.

“We have not been told the (proposed) terms and conditions between Petros and Petronas. We are also unaware of the potential losses Petronas may face,” he said when debating the 2025 finance bill today.

Fadhli said he was not speaking to oppose Sarawak’s efforts to take control of its resources. However, the government must draw up contingency plans to address a likely shortfall in federal revenue, he said.

He claimed a transfer of rights to Petros could reduce petroleum revenue from Petronas – responsible for 28% of government revenue in 2022 – by 30% to 40%.

Fadhli also raised concerns about tax deductions for petroleum exploration and exploitation activities, describing them as high-risk endeavours.

“Not all investments will lead to the discovery of new oil or gas fields,” he said, adding that the government may suffer heavy losses if companies carrying out oil and gas explorations are allowed to claim tax deductions despite failing to make significant discoveries.

Under the Petroleum Development Act 1974, Petronas has ownership of all oil and gas throughout the country, including in Sarawak.

In July, Sarawak announced plans for Petros to take over all buying, selling, price-fixing, supply and distribution of liquid natural gas (LNG) in the state.

While Sarawak premier Abang Johari Openg initially claimed a deal had been reached, Petronas has maintained talks are still ongoing.