The share prices of several Petronas-related companies declined following media reports of a dispute with the Sarawak government. Specifically:
- Petronas Dagangan Bhd (PetDag) lost eight sen, dropping to RM19.66, with 64,300 shares traded.
- Petronas Gas Bhd (PetGas) fell 28 sen to RM17.22, with 91,500 shares changing hands.
- Petronas Chemicals Group (PCG) dropped 20 sen to RM3.47, with a trading volume of 5 million shares.
Shares plummet
The share price drops were linked to a letter of demand sent by the Sarawak government to Petronas Carigali Sdn Bhd (PCSB), a subsidiary of Petronas. The state government, through its Ministry of Utility and Telecommunication, accused PCSB of operating a plant at the Miri Crude Oil Terminal (MCOT) without a required permit, violating Section 7(e) of the Distribution of Gas Ordinance (DGO) 2016. The letter gave PCSB 21 days from its date to obtain the necessary licence, with penalties threatened if the company fails to comply.
In essence, the Sarawak government’s enforcement action against PCSB for allegedly operating the MCOT plant without proper authorization appears to have triggered a negative market reaction, affecting the share prices of multiple Petronas companies.
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