Sabah won’t back down in talks over oil rights, says minister

April 27, 2022

He will bang tables? Okay….. if that floats your boat.

Dateline 2022-03-21, FMT:

Sabah local government and housing minister Masidi Manjun has said he would not back down on the issue of the state’s rights, including on oil and gas, in its negotiations with the federal government and Petronas.

Masidi, who is the head of the state’s negotiation team, said the terms in the talks were in line with the aspirations of the people.

“I’ll walk out of the negotiation room and bang tables if I am not satisfied,” he said in reply to a supplementary question from Shafie Apdal (Warisan-Senallang) at the state assembly today.

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Rising oil prices – fuel subsidy costs Malaysia more than it profits, each US$1 increase is a RM410m deficit

April 16, 2022

Dateline 2022-03-09, Paul Tan:

That the Russian invasion of Ukraine is having a profound impact is undeniable, and it’s not just from aspects of the immediate strife. Oil prices have also spiked as a result of the crisis, having gone past the US$120 per barrel mark, and it is this increase that raises the question – is there a possibility of a readjustment of the fuel subsidy in Malaysia, given the rising pressure the increase is putting on government finances?

As The Star reports, rising oil prices are generally positive for a net oil and gas exporting country like Malaysia. According to a CGS-CIMB Research report, it is estimated that for every US$1 (RM4.18) per barrel average increase in oil prices, the government stands to add some RM370 million in revenue.

However, given that the country has a fuel subsidy mechanism in place, that same US$1 per barrel increase will set the government back by around RM780 million in fuel subsidies, based on the price of RON 95 and diesel remaining unchanged at their ceiling price of RM2.05 per litre and RM2.15 per litre respectively. To give an idea of how much subsidy is in place, RON 97 is currently priced at RM3.45 per litre this week.

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Minister: Soaring oil prices gives Malaysian govt room to continue fuel subsidies

April 13, 2022

Dateline 2022-03-06, The Malay Mail:

The soaring world crude oil prices currently gives some room to the government to continue providing fuel subsidies, says Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.

However, he acknowledged that the price hikes due to the conflict between Russia and Ukraine would also see a rise in prices of other goods, especially imported items such as wheat and corn.

He said the government would continue to monitor the situation, adding that it would definitely pose a challenge to the country’s financial management.

“(The increase in oil prices) will increase revenue but some of the revenue will have to be channelled elsewhere. Estimates have not been made, but at the moment it only depends on assumptions.

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Aker Solutions manager charged again in Malaysia

April 10, 2022

Dateline 2022-02-21, Energy Voice:

Malaysia has filed a fresh charge against a local manager of Norwegian oil services provider Aker Solutions, accusing him of providing false information to the country’s corporate regulator, according to the company and a court document, reported Reuters.

Ahmad Hatta Kamaruzzaman allegedly submitted false information about Aker Engineering Malaysia, a local unit of the group, to Malaysia’s Companies Commission in 2017, according to a charge sheet seen by Reuters and confirmed by a prosecutor.

He has pleaded not guilty, the company said in a statement.

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Speak up on Kelantan oil royalties, Zaid tells MB, ministers

March 29, 2022

Dateline 2022-02-08, FMT:

Former law minister Zaid Ibrahim has called upon Kelantan menteri besar Ahmad Yakob and ministers to speak up on the issue of the oil royalty claim.

He said these oil royalties were needed to develop the state.

“I have raised this issue many times. The menteri besar and Cabinet ministers from Kelantan, from both PAS and Umno, should speak up on the oil royalty issue, but everyone remains silent about it.

“We also need to question why the respective party leaders in Putrajaya do not say anything about this,” Zaid said in a video posted on Facebook.

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Oil royalties bait won’t bite, PAS tells Zaid

March 22, 2022

Why not?

Dateline 2022-02-07, FMT:

The Kelantan PAS Youth wing says payment of oil royalties to the state by the federal government is the right of the people and should not be used as a political bait.

Commenting on former law minister Zaid Ibrahim’s statement asking the voters to kick PAS out if they want the royalty payments, state PAS Youth chief Kamal Mohamad said such a decision must not be tied to the party which is ruling the state.

He said the people of Kelantan had previously been betrayed by the Umno-led Barisan Nasional (BN) government when it was in power by restricting the granting of oil royalties.

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South Korean, Malaysian players tie-up on green hydrogen venture in Sarawak

March 18, 2022

Dateline 2022-01-26, Upstream Online:

South Korea’s Samsung Engineering, Posco and Lotte Chemical plus SEDC Energy – a Sarawak Economic Development Corporation (SEDC) subsidiary– have signed a memorandum of understanding to develop a green hydrogen and ammonia project.

The Sarawak H2biscus green hydrogen/ammonia project (H2biscus Project) will be located in Bintulu, East Malaysia which is already home to the Petronas LNG Complex and Shell’s gas-to-liquids facility.

The H2biscus Project is looking to convert hydropower and natural gas to green hydrogen/methanol and blue hydrogen, and for the conversion of hydrogen to ammonia, aiming to supply hydrogen and ammonia to Korea and Sarawak.

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What the Kelantan oil royalty issue is all about

March 15, 2022

Let’s resalt this old would.

Dateline 2022-01-17, FMT:

The row over oil royalty for Kelantan has been revived by those who claim the state has been unfairly deprived of what it deserves, and that it has affected the state’s development.

The Kelantan government and like-minded activists have been demanding the oil royalty for decades, only for it to be dismissed repeatedly by Putrajaya, on the ground that oil is extracted outside Kelantan’s territorial waters.

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Sabah earns RM1.4b via petroleum sales tax in 2021

February 7, 2022

How do I break into Sabah?

Dateline 2021-12-07, Malay Mail:

Sabah has projected an earning of RM1.4 billion from the newly-implemented sales tax from oil and gas companies this year, Chief Minister Datuk Seri Hajiji Noor said today.

Hajiji said the number was revised from the initial RM1.25 billion, due to the increase in global commodity prices.

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Oil royalty has nothing to do with territorial waters, Zaid tells finance minister

January 7, 2022

Dateline 2021-11-29, FMT:

 Oil royalty payments depend on agreements between states and the federal government and have nothing to do with territorial waters, said former minister Zaid Ibrahim.

The former law minister said this in response to finance minister Tengku Zafrul Aziz’s remarks that there would be no oil royalty payment to any state in the peninsula, including Kelantan.

In a written reply to the Dewan Rakyat, Tengku Zafrul had said although petroleum production was being carried out close to Kelantan, it was taking place outside the state’s waters. He added that Kelantan would continue to receive “wang ehsan” (goodwill payment) for petroleum produced off its coast.

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