Sarawak’s oil royalty poser


Dateline 2014-06-10, Malaysia Chronicle:

SARAWAK Chief Minister Tan Sri Adenan Satem, just 100-odd days in office, has made a demand for an increase in oil royalty to the state from 5% to 20% a key agenda of his administration.

Last month, the state assembly passed a resolution to this effect and Adenan repeated it last week, in the presence of Prime Minister Datuk Seri Najib Razak in Miri.

Najib said the federal government would consider the matter.

Those who are familiar with how the formula of royalty payment to the oil producing states of Sabah, Sarawak and Terengganu works are astounded by the demand, especially asking for a 15% increase, which is ridiculously high.

It calls into question whether the Sarawak state government understands the formula, which I must add here, is rarely explained to the public by Petronas.

Hence public ignorance of the oil royalty issue.

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This entry was posted on Sunday, August 3rd, 2014 at 6:00 am and is filed under Malaysia, Malaysian election, oil and gas. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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