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AsianOil SOUTHEAST ASIA AsianOil
Court granted in December 2019. The compa- to Sarawak fields because the state legislative
ny’s case was dismissed on March 13, however, assembly did not endorse the act.
with the High Court declaring that the state gov- Petronas legal counsel Datuk Malik Imtiaz
ernment was well within its rights to impose the Sarwar told local media this week that the com-
state sales tax (SST). pany aimed to withdraw its appeal once terms
Although Petronas appealed against the had been settled. In its announcement last
decision, the company said on May 8 that month, Petronas said the two sides had also
the two sides had agreed to drop their legal agreed that the company’s SST obligations would
battle as long as Petronas paid a MYR2bn be reduced in the future.
($467.4mn) SST bill while the local gov- The issue between the two sides, Reuters
ernment enshrined all agreements the two reported, was the main reason Petronas CEO
reached under the Petroleum Development Wan Zulkiflee Wan Ariffin resigned earlier this
Act 1974 (PDA 1974). month. The newswire cited unnamed sources as
Sarawak has been seeking greater control of saying that Wan Ariffin had quit after disagree-
its oil and gas resources in recent years – claim- ing with Prime Minister Muhyiddin Yassin over
ing that the country’s PDA 1974 does not apply plans for Petronas to pay Sarawak’s tax bill.
Philippines aims to resume
South China Sea exploration
POLICY THE Philippines is studying ways to resume COVID-19 pandemic as a distraction to tighten
exploration in the contested waters of the its hold over the waters.
South China Sea as it strives both to assert its China lays claim to around 95% of the sea,
sovereignty in the area and bolster its energy bringing it into conflict with not just the Philip-
security prospects. pines but also Vietnam, Brunei, Taiwan, Malay-
Philippine Energy Secretary Alfonso G sia and Indonesia.
Cusi said on June 21 that his department was “We are doing this without compromising
working with the Department of Foreign our sovereignty. That’s one thing we can assure
Affairs (DFA) on its development options. you as we progress in our exploration on how
Exploration programmes were halted once to develop and utilise the resources there at the
the government launched social quarantine West Philippine Sea,” Cusi said. “We need it to
measures to slow the spread of the corona- attain energy security.”
virus (COVID-19). The Philippines uses the term West Philip-
“While we are protecting our territories, the pine Sea to refer to the eastern parts of the South
DoE is trying to work together with the DFA on China Sea that lie within its EEZ.
how we can continue exploration in the area,” Cusi added that while the government was
Cusi said last week. The official said in May that looking to attract upstream investment, inter-
bids for prospective nomination blocks would be est was likely to be affected by the pandemic.
finalised once the country’s lockdown had eased. He said: “Let’s be realistic, because there will
The Philippines is eager to protect its exclu- be tightening of credit, there will be some
sive economic zone (EEZ), having seen increased delay as some investors are withholding their
Chinese activity in the contested waters in recent capital investment, so that will really affect
months. Beijing has been accused of using the investment decisions.”
Week 25 25•June•2020 www. NEWSBASE .com P9
