Will oil royalty finish off Malaysia’s PETRONAS?


Dateline 2018-08-31, The Asean Post:

Every time Malaysia’s national oil and gas company PETRONAS declares a profit, the nation’s four oil-producing states will clamour for a bigger slice of the pie than the current five percent royalty they are receiving.

The subject rose again following the unexpected victory of the Alliance of Hope (Pakatan Harapan) in the country’s May 2018 general election, ending the 61-year continuous rule of the National Front (Barisan Nasional). As part of its election manifesto, the Alliance of Hope coalition promised to increase the oil royalty to 20 percent and to review Malaysia’s Petroleum Development Act of 1974 (PDA) if it came into power.

Prime Minister Dr Mahathir Mohamad announced that the new government of Malaysia will pay the oil-producing states 20 percent but it will be calculated based on profits derived from those states, and not revenue.

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