Dateline 2018-08-19, FMT:
Petronas’ Group Strategic Communications wrote a letter to the editor of The Edge to clarify the outdated Production Sharing Contracts (PSC) terms used in their article “The black gold conundrum” dated July 30.
It highlighted the improper use of the PSC Cost/Profit oil split of 70/20 that is no longer in use, and any calculation on the distribution of wealth using the outdated split was therefore wrong.
Petronas also provided an illustration of the Revenue/Cost (R/C) PSCs split which are in use today.
Apart from The Edge, many others have tried to calculate the “profits” from the PSCs, using the now contentious PSC splits, with regard to Sarawak’s claim for 20% royalty from revenue for its oil and gas resources and recent Pakatan Harapan’s (PH) offer for a 20% royalty from profits.
Animah Kosai (founder at Speak Up, on Linkedin July 26) had 50% Cost Oil to the Operator. Azman Ujang (“The real deal behind Oil Royalty” the Sundaily, July 27) had it at 70% for the recovery of the cost of production.