Petronas has reached an out-of-court settlement with Perwaja Steel Sdn Bhd over the RM275.77 million owed to it by the latter.

Perwaja Steel will pay the sum in monthly instalments starting from August 2015, the national oil and gas company said in a statement today.

The steel company is a wholly-owned subsidiary of Perwaja Holdings Bhd.

In a statement today, Petronas said at the same time, it has agreed to supply dry gas to Perwaja Steel on an advance payment basis.

“Petronas would like to emphasise that the settlement agreement is a business decision to increase its potential of recovering the debt in full,” it added.

- Bernama