BASF Petronas Chemicals Sdn Bhd has agreed to pay RM52 million to Petronas Gas Bhd, marking the full and final settlement of a long-standing dispute concerning electricity supply arrangements between the two companies.
According to a filing by Petronas Gas with Bursa Malaysia, the settlement was concluded in the ordinary course of business and negotiated on an arm’s length basis. The company emphasised that the resolution is fair, reasonable, and conducted on normal commercial terms, while safeguarding the interests of minority shareholders.
Petronas Gas stated that the agreement reflects ongoing commercial collaboration with BASF Petronas and allows both parties to avoid an extended dispute resolution process. The settlement helps mitigate potential uncertainties in revenue recognition and financial expectations.
The dispute stems from a sale and purchase of electricity agreement entered into on 21 December 1998, along with supplementary agreements. Between 2018 and 2019, disagreements emerged regarding certain provisions of the electricity agreement, ultimately leading to the negotiated resolution announced.
The RM52 million payment draws a line under the matter, reinforcing the commitment of both parties to maintain stable and commercially sound business relationships.
-Bernama
