KUALA LUMPUR, June 23 — State oil firm Petronas Berhad sought a brief adjournment of its appeal today of the High Court decision against it over RM2 billion in unpaid sales tax in Sarawak, saying it was finalising an agreement with the state government.

The Edge reported that Petronas counsel Datuk Malik Imtiaz Sarwar informed the three-member bench of the Court of Appeal that the agreement was being finalised with the involvement of the Sarawak comptroller of taxes.

Sarawak counsel Datuk Seri JC Foong then informed the court that the state government was of the view that Petronas should withdraw the appeal.

Justice Datuk Seri Kamaludin Md Said then fixed August 3 for the next hearing.

The other judges on the panel were Justice P. Ravinthran and Justice Datuk Abu Bakar Jais.

On June 10, the Sarawak State Assembly Consultative Committee on Malaysia Agreement 1963 announced the formation of a team to negotiate with Petronas over the sales tax on petroleum products in the state.

The team is led by state Tourism, Arts and Culture Minister Datuk Karim Rahman Hamzah, and includes Sarawak Assembly Deputy Speaker Datuk Gerawat Gala,  Muara Tuang assemblyman Datuk Idris Buang, Pujut assemblyman, Sarawak United Peoples' Party secretary-general Datuk Sebastian Ting, and Batu Lintang assemblyman See Chee How.

This follows the resignation of Petronas' president cum chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin on June 6, reportedly after he disagreed with Prime Minister Tan Sri Muhyiddin Yassin over a plan to pay US$470 million (RM2 billion) in sales tax to Sarawak.

Petronas had been fighting Sarawak’s demand for the sales tax in court before the two parties announced a settlement in May, although Sarawak later said it would continue its legal action until an agreement is final.