Petronas dividend to govt this year may exceed RM13 billion

KUALA LUMPUR: With crude oil prices rebounding, Petroliam Nasional Bhd (Petronas) may be able pay more than RM13 billion in dividend to the government this year, said its chairman, Tan Sri Mohd Sidek Hassan, yesterday.
Last year, Second Finance Minister, Datuk Seri Johari Abdul Ghani said based on the assumption of Brent crude oil at US$45 per barrel (RM200), Petronas will be cutting its contribution by RM3 billion, compared with a RM 16 billion contributions in 2016.
“We will see when it happens. If things change it can be done,” Mohd Sidek told reporters at the Economic Governance: Public Sector Governance Forum organised by the Malaysian Economic Association( MEA) when asked if Petronas would consider increasing its dividend payment.
“The government is a very responsible government, it has budgeted a certain amount,” he said.
The national oil company paid RM26 billion in dividend to Putrajaya in 2015.
On another note, Mohd Sidek said Petronas may relocate the US$27 billion liquefied natural gas (LNG) terminal, known as the Pacific Northwest LNG Project, planned for Western Canada should it be warranted.
The comment follows statements made by John Horgan, leader of the province’s opposition New Democratic Party, who said in his campaign speech for the British Columbia premier’s office that the project has been “poorly sited.”
Horgan reportedly said should he assume power as premier, he will “find a better place and way” to build the gas export terminal.
Mohd Sidek said Petronas would need to take various factors into account on the issue of relocation. “If it warrants it, we will do it,” he said.
The project won the Canadian government's approval in September following years of regulatory reviews and strident opposition from environmentalists, scientists and indigenous communities who warned it could disrupt an area critical to salmon migration.
The project also faces economic headwinds as more than 20 gas export proposals in the province have been stalled by a global supply glut and plunging prices.