5% oil royalty is the agreement, not ‘wang ehsan’, says Ku Li


And history repeats itself, I think it was the exact same quote back then.

Dateline 2021-11-29, FMT:

There is no such thing as the payment of “wang ehsan” (compassionate money) to states under the Petroleum Development Act, says Tengku Razaleigh Hamzah, founding chairman of Petronas.

The veteran politician said the agreement between Petronas and the respective state governments was for the oil company to pay the states 5% in cash payments in exchange for them vesting their hydrocarbon or oil and gas rights in Petronas.

There was no mention of any wang ehsan in the Act’s vesting deed, he maintained, while the 5% figure came out of calculations performed by former Sarawak chief minister Abdul Rahman Ya’kub, which was jointly agreed upon by the states and Petronas.

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