Royalty: Sabah was not consulted


Dateline 2018-07-27, Daily Express:

Deputy Chief Minister Datuk Seri Wilfred Madius Tangau expressed unhappiness with the Federal Government for deciding and announcing about oil royalty without first consulting oil producing states, including Sabah.

He stressed that the need for mutual agreement was clearly stated in the Petroleum Development Act 1974.

He was commenting on reports quoting Economic Affairs Minister Datuk Seri Mohamed Azmin Ali as saying that the Federal Government could not immediately implement its promise to pay 20 per cent royalty to oil-producing states as the PDA carries out calculation based on gross profit and not net profit.

He said the Federal Government will only implement its promise after amendments are made to the PDA 1974.

However, Madius suggested there is need to further discuss with Sabah on the matter.

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