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Policy & Regulation

Sales tax ups ante in Malaysian resources battle

The intensifying political struggle over hydrocarbons in the eastern Malaysian state of Sarawak is denting investor confidence in the region The intensifying political struggle over hydrocarbons in the eastern Malaysian state of Sarawak is denting investor confidence in the region.
By Damon Evans 3 October 2019 Asia Pacific / Exploration & Production 0 34639
The naming ceremony for the Helang FPSO vessel in China before it heads to the Layang field offshore Sarawak. (PA)

The key issue: The Malaysian state of Sarawak, Home to the 29.3 mtpa Bintulu LNG export complex, Is threatening legal action against Petronas if the NOC does not pay a 5% sales tax imposed on the export of petroleum products.

The political battle for control of hydrocarbon resources in Sarawak is intensifying after the eastern Malaysian state threatened to file a lawsuit against Petronas over a sales tax.

New upstream projects waiting to take FID and already delayed by the struggle now look set to face further...