KUALA LUMPUR (Dec 10): Malaysia is considering selling stakes in energy giant Petronas to states where the company's oil and gas fields are, Prime Minister Tun Dr Mahathir Mohamad told Reuters on Tuesday, in a bid to raise funds for the debt-laden government.

Such a move may also give states such as Sarawak and Sabah a say in the running of Petronas, the world's third-largest exporter of liquefied natural gas. Dr Mahathir said the government could not meet a demand made by the states for a quadrupling of the royalties paid by the company to 20% of its profit.