KUALA LUMPUR, Dec 7 — Petroliam Nasional Bhd (Petronas) and the Sarawak state government today signed a commercial settlement agreement on the issues of the state’s sales tax and oil mining laws.

Petronas president and group chief executive officer Tengku Muhammad Taufik Tengku Aziz said the commercial settlement agreement would establish a framework between the national oil company and the state government that would see Sarawak more actively involved in its onshore oil and gas activities through Petroleum Sarawak Bhd (PETROS).

"Under this landmark commercial settlement agreement, both Petronas and the state government have agreed to establish a consultative framework to enhance collaboration through a structured and formalised avenue comprising a joint coordination committee and an annual strategic dialogue.

"These platforms will be co-chaired between Datuk Patinggi Dr Abang Haji Abdul Rahman Zohari, Chief Minister of Sarawak and Tan Sri Ahmad Nizam Salleh, chairman of Petronas’ board,” he said at the signing ceremony today.

The signing ceremony was witnessed by Prime Minister Tan Sri Muhyiddin Yassin, Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg and Finance Minister Tengku Datuk Seri Zafrul Aziz.