The chief of Malaysian energy giant Petronas quit this month after a disagreement with the prime minister over giving more oil money to one of the country's states run by a government ally, sources close to the government and the company said.

Extra payments would hit Petronas and the national budget at a time the coronavirus has dampened oil prices but could also raise questions over the management of state finances as Malaysia seeks to rebuild its reputation after the international scandal over state fund 1MDB.