Date: 08 Mar 2000
Time: 07:36:29
Remote Name: 156.29.145.175
03/08/2000 Business Times (Malaysia) Copyright (C) 2000; Source: World Reporter (TM)
THE US' move to prohibit all foreign oil companies from investing in Iran and Sudan was a unilateral decision which did not have the blessing of the United Nations, the Dewan Rakyat was told yesterday.
Minister in the Prime Minister's Department Tan Sri Bernard Dompok said the national oil company, Petronas, was just like oil companies from other countries which would continue to operate and seek business and investment opportunities in the two countries.
"So Petronas will not pay heed to the sanction imposed by the US because Petronas is a company which has been operating like other companies," he said when replying to a supplementary question from Datuk Wira Abu Seman Yusop (BN-Alor Gajah).
Abu Seman wanted to know what effects the American sanction had on Petronas' investments in Iran and Sudan.
To the original question from Abu Seman, Dompok said Petronas ventured overseas to diversify investments in line with its vision of becoming a multinational oil and gas corporation.
Dompok said Petronas had so far invested in South Africa, Argentina, Australia, Britain, China, the Philippines, India, Cambodia, Myanmar, Sudan, Thailand and Vietnam.
He said its investments were in petroleum development and production activities, transmission, marketing and distribution of gas, LPG and petroleum products.
Almost all of these investment activities were now in operation, he said.
Dompok said for the financial year ended March 31, 1999, Petronas' international operations contributed RM14.3 billion or 33.7 per cent to the group's revenue.
To a supplementary question from Abdul Rahman Yusof (PAS-Kemaman) on the losses suffered by Petronas in its investments following the depreciation of the ringgit, Dompok said he did not have the details on this.
However, he said the current price of oil was US$33 per barrel and when Petronas made the investments it was in the region of US$18 per barrel.
Therefore, any losses caused by the depreciation of the ringgit could be offset by the increase in oil price, he said.
On the interest shown by local entrepreneurs to become Petronas' business partners in its overseas investment activities, he said Petronas did not have objection to this.