Sarawak Chief Minister Adenan Satem confirmed today that negotiations between the state and Petronas over Sarawak’s request to increase its oil royalty payment from five percent to 20 percent have failed.

“Our negotiations with Petronas on our request for an increase in oil and gas royalties from five percent to 20 percent have not succeeded.

“However, Petronas has assured it will award RM2.1 billion worth of contracts to Sarawak-based companies,” Adenan announced during a national smallholders and commodities entrepreneur conference in Kuching today.