KUALA TERENGGANU: The Terengganu government says it will consider buying a stake in Petronas if it is for a reasonable amount of equity.
Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said opn Dec 11 that the state government does not have the financial capacity to buy the entire shareholdings of the national oil company.
“It will depend on the relevant assets – oil wells, size and price, among others. If it amounts to billions (of ringgit), we (the state government) cannot afford it. (But) states like Sabah and Sarawak have large cash reserves compared to Terengganu.
“But if it’s in the form of equity, say 5% or 10%, then we can probably consider (buying) a reasonable amount of equity. In Terengganu we have many oil wells. If one oil well comes to only RM10 mil or RM20 mil, then we can buy,” he told reporters after chairing a state executive council meeting here.
Prime Minister Tun Dr Mahathir Mohamad reportedly said on Dec 10 that the government is considering selling stakes in Petronas to states where the company’s oil and gas fields are located in an effort to raise funds for the debt-laden government.
However, Ahmad Samsuri said the state government has not been officially informed about the proposal and will need detailed information before making any decision.
Meanwhile, he said, Terengganu continues to receive a 5% oil royalty from the federal government and has not made any demand to raise the royalty payment to 20% as has been done by Sabah and Sarawak. – Bernama
