Govt seeks to decrease oil production to stabilise prices

January 11, 2019

Dateline 2018-12-04, The Star:

Malaysia will seek to decrease oil production in order to stabilise global oil prices, says Datuk Seri Mohamed Azmin Ali (pic).

“Even though we are not a member of Organisation of the Petroleum Exporting Countries (Opec), it needs the support of small producers like Malaysia to help stabilise the price of petroleum,” the Economic Affairs Minis­ter said.

Malaysia will take part in the Opec discussion in Vienna today.

Member and non-member countries are set to reach an accord over possible output cuts to address falling crude oil prices.

At present, Brent crude oil prices stand at US$62.34 (RM260) per barrel, compared to US$70 (RM292) a barrel when Budget 2019 was tabled on Nov 2.

 


Restore Sarawak’s rights to its oil

October 29, 2018

Dateline 2018-08-06, FMT:

Economic Affairs Minister Mohamed Azmin Ali has told Parliament that Pakatan Harapan’s (PH) election promise of giving a 20% “royalty” to oil-producing states was based on “a loose definition of the word… The term cash payment is not used generally, but it is generally understood to mean a royalty”.

He said a special Cabinet committee had been formed to negotiate with the oil-producing states on how to increase the 15% payments to them, on top of the existing 5% of gross profit cash payment under the Petroleum Development Act (PDA).

 


Royalty: Sabah was not consulted

October 18, 2018

Dateline 2018-07-27, Daily Express:

Deputy Chief Minister Datuk Seri Wilfred Madius Tangau expressed unhappiness with the Federal Government for deciding and announcing about oil royalty without first consulting oil producing states, including Sabah.

He stressed that the need for mutual agreement was clearly stated in the Petroleum Development Act 1974.

He was commenting on reports quoting Economic Affairs Minister Datuk Seri Mohamed Azmin Ali as saying that the Federal Government could not immediately implement its promise to pay 20 per cent royalty to oil-producing states as the PDA carries out calculation based on gross profit and not net profit.

He said the Federal Government will only implement its promise after amendments are made to the PDA 1974.

However, Madius suggested there is need to further discuss with Sabah on the matter.


20% oil royalty on profit, so wait for amendments to law, says Putrajaya

October 16, 2018

Dateline 2018-07-25, FMT:

The federal government will only implement its promise to pay 20% royalty to oil-producing states after amendments are made to the Petroleum Development Act 1974, said Economic Affairs Minister Mohamed Azmin Ali.

“It cannot be carried out immediately as the act carries out calculation based on gross profit and not net profit.

“Due to that, if the government wants to increase the oil royalty to 20%, it will take time as an amendment is needed,” Azmin (PH-Gombak) told Dewan Rakyat today.