Why The Introduction Of The Petroleum Sales Tax In Sarawak May Not Appeal To Everyone

November 25, 2019

Ummm, the answer’s in the title?

Dateline 2019-09-30, The Malaysian Reserve:

IN NOVEMBER last year, the Sarawak state government announced a proposed sales tax on petroleum products to increase State revenue.

The five per cent sales tax on petroleum products include amongst others, crude oil, natural gas, LNG, chemical based fertilisers and gas-to-liquid products, and is expected to generate an estimated revenue of RM3.897 billion and diversify the State’s revenue base. Analysts say the amount, which has been factored in the State’s 2019 Budget, could be much higher.

Merely two months after, the State announced that the five percent sales tax will only be imposed on sale and delivery of petroleum products outside the State.

While introduction of a sales tax on petroleum products may result in improving the coffers of the State, in the long run the increased production cost may make the petroleum industry less attractive to investors.

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Sarawak has new formula for oil revenue-sharing, says CM

November 24, 2019

Dateline 2019-09-28, FMT:

The Sarawak government says it has a new formula on revenue-sharing with Petronas in a bid to recover its losses from royalties on natural gas and crude oil obtained from within its waters.

Chief Minister Abang Johari Openg said the new formula had been submitted to the federal government.

He said he was aware that government-owned Petronas is also an international company but that did not mean that the company could deprive the state of its revenue.

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Sarawak govt to take Petronas to court if 5pc sale tax not paid

November 23, 2019

Really?

Dateline 2019-09-29, Malay Mail:

Sarawak Chief Minister Datuk Patinggi Abang Johari Openg today said the state government is prepared to go to court to get its share of revenue from Petroliam Nasional Berhad (Petronas), if the oil company does not pay the 5 per cent sales tax on the export of petroleum and petroleum products.

He said the state is within its rights to receive the share as enshrined under the Malaysia Agreement (MA63) and the Federal Constitution.

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Shell completes Gumusut-Kakap Phase 2

November 21, 2019

Dateline 2019-09-28, Borneo Post Online:

Sabah Shell Petroleum Company Ltd, the operator of the Gumusut-Kakap (GK) semi Floating Production System located offshore Sabah, announced the completion of its GK Phase 2 project, which involved the drilling of four additional subsea wells tied back to its semi Floating Production System (GK-Semi FPS).

At peak production, the four wells will add 50,000 barrels of oil equivalent per day to the GK-Semi FPS, sustaining its rated production capacity of 165,000 barrels per day.

Located in water depths of 1,200 meters, the GK-Semi FPS was Shell’s first Deepwater development in Malaysia, starting production in 2014.

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Dive Tenggol 2019-10 2 of 3

November 20, 2019

This is what you see when your camera is set in macro mode.

OLYMPUS DIGITAL CAMERA
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OLYMPUS DIGITAL CAMERA

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Saudi Aramco stands by Malaysia mega-refinery, Petronas says

November 19, 2019

Dateline 2019-09-20, Nikkei Asian Review:

Malaysia’s state oil company Petronas said on Friday that recent attacks on a key Saudi oil facility will not affect Saudi Aramco’s $7 billion investment in a refinery complex in the southern state of Johor.

Saudi Aramco acquired a 50% stake in the Rapid project’s refinery and cracker plants in 2017, agreeing to supply up to 70% of the crude feedstock for the refinery operations, which are scheduled to begin commercial production later this year.

“We do not foresee any impact on supplies to Rapid from Saudi Aramco,” Petronas President and CEO Wan Zulkiflee Wan Ariffin told reporters in Kuala Lumpur.

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Malaysia’s Petronas says Q2 profit rises 8%

November 18, 2019

Dateline 2019-09-20, Reuters:

Malaysia’s state-owned energy firm Petroliam Nasional Bhd reported an 8% increase in second-quarter profit on Friday because of a weaker Malaysian ringgit, though that was partially offset by higher product costs.

Petronas, as the company is known, said profit after tax for April-June rose to 14.7 billion ringgit, up from 13.6 billion ringgit ($3.25 billion) in the same period a year earlier.

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Malaysia’s Petronas sees tough times ahead despite higher oil, LNG sales

November 17, 2019

Dateline 2019-09-20, S&P Global:

Petronas said Friday that rising sales of petroleum products and LNG helped the state-run Malaysian firm post profit and revenue growth in the first half of 2019, but warned that ongoing trade tensions, sluggish demand and slowing global growth could pose challenges in the second half.

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Malaysia’s Petronas says Q2 profit rises 8%

November 16, 2019

Dateline 2019-10-20, Reuters:

Malaysia’s state-owned energy firm Petroliam Nasional Bhd reported an 8% increase in second-quarter profit on Friday because of a weaker Malaysian ringgit, though that was partially offset by higher product costs.

Petronas, as the company is known, said profit after tax for April-June rose to 14.7 billion ringgit, up from 13.6 billion ringgit ($3.25 billion) in the same period a year earlier.

Revenue at the firm decreased marginally to 59.1 billion ringgit from 59.2 billion ringgit, mainly due to lower average realised prices for petroleum products and liquefied natural gas. ($1 = 4.1790 ringgit) (Reporting by Rozanna Latiff; editing by Christian Schmollinger)

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Maritime pilots claim LNG terminal near cruise port dangerous

November 14, 2019

May I suggest that perhaps that the safety report wasn’t read or couldn’t be bothered to be read by some stakeholders?

Dateline 2019-09-13, Malay Mail:

The Maritime Pilots of Malaysia (MPM) organisation is concerned that the planned Liquefied Natural Gas (LNG) terminal at Pulau Indah, Port Klang is a violation of public and port safety due to its location near a cruise ship terminal.

Its president and chairman Martin Lim said that while it lauded the government’s efforts in bringing in investment of the LNG terminal and storage facility, the nature of the development needed more consideration due to its hazardous nature.

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