Kuala Lampur, Aug. 29 -- The framework agreement between Petronas and Petros marks a strategic turning point in Malaysia's efforts to reconcile national energy ambitions with Sarawak's growing autonomy and potential in the energy sector.

At stake is the alignment of Malaysia's upstream growth with an energy transition that is increasingly centred in Sarawak, home to the nation's largest gas reserves and the bulk of its LNG exports.

Signed in May 2025, after years of federal-state disputes, the Petronas-Petros accord sets a roadmap for collaboration. It seeks to balance Sarawak's rights under the Distribution of Gas Ordinance (DGO) with Petronas' authority under the Petroleum Development Act (PDA), and in doing so, unlock value in upstre...