Terengganu mulls buying 'reasonable amount of equity' in Petronas

KUALA TERENGGANU, Dec 11 -- The Terengganu state government says it will consider buying a stake in Petroliam Nasional Bhd (Petronas) if it is for a reasonable amount of equity.

Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said 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 i.e. oil wells, as to 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 five or 10 per cent, 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 million or RM20 million, then we can buy,” he said when met by reporters after chairing a state executive council meeting at Wisma Darul Iman here today.

Primer Minister Tun Dr Mahathir Mohamad reportedly said yesterday 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 five per cent oil royalty from the federal government and has not made any demand to raise the royalty payment to 20 per cent as has been done by Sabah and Sarawak.

-- BERNAMA