KUALA LUMPUR : Malaysian state energy firm Petroliam Nasional Berhad (Petronas) will retain its national authority over oil and gas even as Petroleum Sarawak Berhad (Petros) takes control of gas distribution in Sarawak state, Prime Minister Anwar Ibrahim said.

Anwar said while Petros had authority as a gas aggregator, both it and the Sarawak government agreed it would not interfere with Petronas' role and operations under the Petroleum Development Act 1974, state news agency Bernama reported.

"The PDA 1974 remains the overarching framework for governance in Malaysia's oil and gas industry. All existing agreements are intact, as disturbing them would complicate relationships with major international companies. This has been mutually accepted," Anwar was quoted as saying.

Anwar said any gas-related projects in energy-rich Sarawak, particularly those requiring substantial financing, would have to involve Petronas, Bernama reported.

Sarawak, on Borneo island, has long sought greater control of its natural resources. Last February it appointed Petros to procure, distribute, supply and sell all natural gas produced in the state to downstream buyers.

A deadlock in negotiations last year had sparked some industry worries over the potential impact on Petronas, a major contributor to federal coffers, and on energy activities in Sarawak, which holds over 60 per cent of Malaysia's gas reserves.

Last month, Anwar said the firms had overcome an impasse that had delayed the transfer of gas trading rights

Bernama reported Anwar said it was agreed in the negotiations that Petronas would involve Petros for projects in Sarawak, and Petros would similarly include Petronas in its projects such as exploration and hydrogen ventures.

Sarawak premier Abang Johari Openg said in a statement that Anwar had acknowledged Petros as the sole gas aggregator in Sarawak, and the parties would work together to ensure an uninterrupted supply of gas.

Separately, a source in the Prime Minister's office said the supply of gas for LNG operations in Sarawak will continue to be handled by Petronas.

Petronas and Petros did not immediately respond to Reuters' request for comment.