While the matter was complicated, Petronas and the state government would be able to come up with a win-win solution, he said, according to The Borneo Post.

“I am confident that Petronas and the Sarawak government, through Petros, will be able to resolve it, (which would result in an) equitable distribution of wealth between the Sarawak government and the federal government,” he was quoted as saying in his Hari Raya Aidilfitri message.

Petros, the state-owned oil and gas exploration firm, was recently recognised as the sole gas aggregator in Sarawak.

In February, Prime Minister Anwar Ibrahim said the two governments have agreed to Petronas and its subsidiaries retaining all existing contractual obligations, domestic and international.

Anwar told the Dewan Rakyat that the two governments also recognised the Petroleum Development Act 1974 as a federal law. Sarawak activists had contended that the state retained rights to oil and gas from a colonial-era law that preceded the Act.

Earlier this month, FMT reported a deadlock in Petronas-Petros negotiations after Petros insisted on becoming the “middleman” in Petronas’s existing contracts.

Abang Johari said Sarawak had contributed 10% to the national gross domestic product through revenue derived from oil and gas exploitation.

On a related matter, he said the state’s ruling coalition, Gabungan Parti Sarawak, is working to ensure that natural gas resources are used as efficiently as possible to catalyse local economic growth.

He said gas hubs would be located in Bintulu, Samalaju, Miri and Kuching, for downstream activities and bunkering services for the shipping industry.

“Downstream activities have already begun in Tanjung Kidurong, Bintulu with the development of Sarawak’s first methanol plant with a production capacity of 1.8 million metric tonnes per year.

“The second plant in Tanjung Kidurong will process natural gas into ammonia which is a source of hydrogen gas for export abroad, particularly Japan,” he said.