No lawsuit, but Petronas must pay what is owed to Sabah

September 11, 2020

Dateline 2020-007-16, The Malaysian Reserve:

SABAH state government is not planning to file a lawsuit against Petroliam Nasional Bhd (Petronas), but the company should pay what is owed to the state, says Chief Minister Datuk Seri Mohd Shafie Apdal.

Mohd Shafie told The Malaysian Reserve in a recent interview that Petronas should have afforded Sabah the same treatment as Sarawak, based on the court ruling.

The Kuching High Court ruled on March 13 this year that Sabah and Sarawak have the right under the Federal Constitution to impose sales tax on petroleum products.


After Sarawak, Sabah starts imposing petroleum sales tax

May 13, 2020

Dateline  2020-04-07, Malay Mail:

Sabah has implemented a 5 per cent sales tax on petroleum products sold in its territory, said Chief Minister Datuk Seri Mohd Shafie Apdal.

He said he informed petroleum companies of the state’s decision to collect the tax last month and it should come into effect immediately.

“We’ve done it already, last month,” he said when asked what was Sabah’s plan to impose the tax.

This comes after the High Court ruled last month that Sabah and Sarawak have the right under the Federal Constitution to impose a sales tax on petroleum products.


Oil and gas ‘details’ will be announced in January – CM

February 13, 2020

Dateline 2019-12-15, Borneo Post:

Details regarding oil and gas in Sabah will be revealed in January next year.

Disclosing this yesterday, Chief Minister Datuk Seri Panglima Mohd Shafie Apdal said a meeting with Petronas was held on Friday, discussing oil and gas in Sabah, including the 20 percent oil and gas royalty.


Nation’s first Micro LNG facility

May 10, 2019

Darn it, I missed the boat. Who’s Kudos?

Dateline 2019-03-29, Daily Express:

Malaysia’s first Micro Liquefied Natural Gas facility at Kota Kinabalu Industrial Park that was officially launched, Thursday, will not only spur the economy but provide job opportunities for Sabahans, said Chief Minister Datuk Seri Mohd Shafie Apdal.Some 99 per cent of the workforce comprises Sabahans, mainly engineers and technicians. Although micro in size with capacity of producing 35 metric tonnes daily or equivalent to 1.8 million standard cubic feet a day, it can meet the energy requirements of small and medium industries across the State.  Consumers would benefit from cleaner and cheaper fuel at a competitive price, which in turn translates to cost savings and reduce the cost of doing business in Sabah.

Kudos goes to Sabah Energy Corporation Sdn Bhd (SEC), a wholly owned company of the State Government, which reached this significant milestone, in collaboration with Zhangjiagang Furui Special Equipment Company limited, a multinational company from China.


Sabah expects RM5 bil in petroleum royalty

November 8, 2018

Dateline 2018-08-14, FMT:

The Sabah government expects no less than RM5 billion annually if petroleum royalty is increased from 5% to 20%.

However, Chief Minister Mohd Shafie Apdal said Petronas had informed the state government that cash payments from oil and gas revenues would depend on various factors.

“Among the factors which determine the amount of royalty include the mechanism and basis for the increments in cash payments which need to be discussed and decided by the relevant parties, estimates of oil and gas output, advanced plans for the development of oil and gas fields and global crude oil prices,” he said.

Shafie, who is also the state finance minister, said this in reply to a question from Dr Joachim Gunsalam (PBS-Kundasang) at the Sabah state assembly here today.


Act to regulate oil industry in Sabah

November 6, 2018

Dateline 2018-08-14, Borneo Post:

Chief Minister Datuk Seri Mohd Shafie Apdal will announce an enactment on mineral resources that will allow the state government to regulate the oil industry over its land and water in the future.

Shafie said this at the State Assembly in response to another additional question posed by Datuk Dr Jeffrey Kitingan on whether the state government would emulate Sarawak and activate the mining and land ordinance laws to regulate the Sabah oil industry.

“Indeed, that is always in our thoughts. Soon I will have an enactment associated with minerals, but we are looking at two sectors. Whether it will be in the power over land, if it is in the field of land (it will cover) only mainland and where the offshore, you cannot do anything.

“But if it covers up the whole thing that is related to the ordinance of available mineral resources, I am confident that this will further empower the state government. I hope that YB Tambunan can provide support when I present this ordinance,” he quipped.

Shafie will also lead the pursuit of Sabah’s 40% oil net revenue owed by the federal government to the state as stated in the Malaysia Agreement 1963 (MA63) and Schedule 10, Article 112 of the Federal Constitution.


Sabah expects RM5 bil in petroleum royalty

November 4, 2018

Will that be in physical barrels?

Dateline 2018-08-14, FMT:

 The Sabah government expects no less than RM5 billion annually if petroleum royalty is increased from 5% to 20%.

However, Chief Minister Mohd Shafie Apdal said Petronas had informed the state government that cash payments from oil and gas revenues would depend on various factors.

“Among the factors which determine the amount of royalty include the mechanism and basis for the increments in cash payments which need to be discussed and decided by the relevant parties, estimates of oil and gas output, advanced plans for the development of oil and gas fields and global crude oil prices,” he said.

Shafie, who is also the state finance minister, said this in reply to a question from Dr Joachim Gunsalam (PBS-Kundasang) at the Sabah state assembly here today.