KUALA LUMPUR (March 8): Petroliam Nasional Bhd (Petronas) will continue to engage with Sarawak Petroleum Bhd (Petros) on a working arrangement, as well as other oil producing states it has cooperation with, its president and group chief executive officer, Tan Sri Wan Zulkiflee Wan Ariffin said.

"This comes under the ambit of the Malaysia Act 1963 (MA63). We will just see what is the outcome of the discussions," he told reporters after delivering the group's financial performance ended Dec 31, 2018 here today. 

It was reported that Petronas and Sarawak state-owned Petros were in talks over a working arrangement that is mutually acceptable to both parties.

Sarawak is the only oil-producing state that Petronas is currently in discussion with and the national oil and gas company is not involved in negotiations over the state’s request for higher oil royalty.

The federal government has promised to restore the rights of Sabah and Sarawak as equal partners forming Malaysia in line with MA63 and this will mean giving the two states more autonomy over several areas such as the oil and gas industry. 

Sabah and Sarawak produce about 60 per cent of the country's total petroleum output but each receive only five per cent of the oil revenue. Pakatan Harapan, in its election manifesto, promised to raise oil royalties to 20 per cent, of which the distribution mechanism now in dispute. 

On Formula 1 (F1) making a return to Malaysian soil, Wan Zulkiflee said the idea would lead to lengthy negotiations with the organiser. 

Asked whether Petronas will step forward to be the event's organiser if it were to take place again, he said that F1 is a government's event.  

Prime Minister Tun Dr Mahathir Mohamad has expressed hope that the Malaysian Grand Prix would make a comeback to the Sepang International Circuit.