Sarawak not likely to get oil royalty increment, say sources

Don’t you just love the tafseers and parsing taking place when certain phrases are “quoted”?

Dateline 2014-10-20, The Malaysian Insider:

The chances of Sarawak getting an increase in the oil and gas royalty payment is less likely after two rounds of talks with Petronas is said to have reached a stalemate.

Sources close to the state administration claimed the oil and gas company had reportedly balked at the state’s request to raise the royalty, from 5% to 20%, after both parties failed to agree on the quantum.

The Malaysian Insider learnt that negotiations with Petronas was “heavy going” and the company had given a “myriad of reasons” why it was refusing to meet the 20% request.

The source said a dispute on how the payment quantum should be calculated was also a hurdle too difficult to surmount at the talks.

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