Petronas
Malaysia's state-owned oil and gas company.
Petronas was one of three oil companies Washington spared on 18 May 1998 over a $2bn Iranian gas deal, the precedent behind Donald Trump's waiver of the Graham Act's Russia tariffs on 16 October 2026.
Last refreshed: 18 October 2026
How did Petronas escape US sanctions over Iran in 1998?
Timeline for Petronas
Spared by the 1998 waiver
Russia-Ukraine War 2026: Mentioned in: Trump waives Graham Act's Russia tariffsBackground
Petroliam Nasional Berhad was incorporated on 17 August 1974. Its sole shareholder is the Malaysian federal government, and it is headquartered in the Petronas Towers in Kuala Lumpur and reports a presence in more than 100 countries.
Its brush with US sanctions law came through Iran. In September 1997 it joined Gazprom as a minority partner to Total in a $2bn deal to develop phases 2 and 3 of the South Pars gas field, the first project found to breach the Iran and Libya Sanctions Act.
Washington chose not to punish it. The National-interest waiver of 18 May 1998 covered all three partners, so Petronas faced no US penalty for the deal. The case resurfaced on 16 October 2026, when Donald Trump waived the Graham Act's Russia tariffs under a clause of the same kind.
Who owns Petronas?
Why was Petronas threatened with US sanctions in 1998?
When was Petronas founded?
Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 18 October 2026. Editorial standards.