Historically, the oil and gas industry in Malaysia has been predominantly controlled by Petronas, the national oil company owned by the Malaysian federal government. 5% of the revenues from oil and gas is returned to oil-producing states as royalties. Since 2014, Sarawak, a state within Malaysia rich in oil and gas, has been negotiating with Petronas for an increase in oil royalty to 20%.
In 2017, Sarawak established Petroleum Sarawak (Petros), a state-owned oil and gas exploration firm which manage the state’s oil and gas resources and has full ownership over all oil wells in Sarawak. It was recently announced that starting from 2025, Petros would completely take over the buying and selling of natural gas in Sarawak.