Historically, the oil and gas industry in Malaysia has been predominantly controlled by Petronas, 5% of the revenues from oil and gas is returned to oil-producing states as royalties but it has increased to 20% for Sarawak
In 2017, Sarawak established Petroleum Sarawak (Petros), a state-owned oil and gas exploration firm which manages the state’s oil and gas resources and has full ownership over all oil wells in Sarawak. On May 13, Sarawak announced that Petros will take over Petronas' role in all natural gas trading activities in the state effective July 1. Petros and Petronas also agreed to sign a definitive agreement where Petronas will acknowledge Petros as the sole gas aggregator.