Malaysia’s Sarawak to drop demand for Petronas royalty hike

January 5, 2020

Dateline 2019-10-30, Reuters:

Malaysia’s energy-rich state of Sarawak will drop a demand for quadrupling royalties paid by energy giant Petronas but is pushing for production-sharing and other agreements, a key negotiator told Reuters on Wednesday.

Sarawak and neighbouring Sabah possess Malaysia’s most prolific oil and gas reserves in their waters in the South China Sea.

Their longstanding royalty demand would cost government-owned Petronas up to $7 billion a year, according to a rough calculation by a person aware of the matter.

Sabah, Sarawak to link up on oil and gas reserves

December 20, 2019

Aaaannd PETRONAS doesn’t come to the table?

Dateline 2019-10-14, FMT:

With strong reserves in natural gas and crude oil, Sabah and Sarawak are to strengthen their relationships in the oil and gas industry and capitalise on Indonesia setting up its new capital in Kalimantan, the chief ministers of the two states said today.

Sabah chief minister Shafie Apdal and his visiting Sarawak counterpart Abang Johari Openg said they were eager to solidify their working relationship in the oil and gas industry, which is crucial to both economies.

Shafie said the two states share common interests and could transform their social economies if they combined their strengths.

Pay up 20% oil royalty or stop pumping in Sabah, says Jeffrey

November 26, 2019

Dateline 2019-09-30, FMT:

Sabah opposition leader Jeffrey Kitingan yesterday hit out at the Pakatan Harapan (PH) government over Dr Mahathir Mohamad’s remark that it is impossible to give the East Malaysian states the 20% oil royalty, calling this at odds with Putrajaya’s “Shared Prosperity” vision for the country.

In Sabah, doubts linger as Putrajaya’s MA63 review accused of being one-sided affair

November 7, 2019

Dateline 2019-09-02, Malay Mail:

Sabahans remain unconvinced of Putrajaya’s sincerity in reviewing the Malaysia Agreement 1963, with concerns that the terms of the review being a one-sided affair.

Noting that discussions are still ongoing, political observers say that it is imperative that talks prioritise the 40 per cent return of revenue from the state, and deal with the thorny issue of oil and gas ownership.

Many Sabahan O&G firms in ‘limbo’ – Upko Youth

July 10, 2019

Why? Isn’t Repsol and Hibiscus slinking round there? And there are newcomers everywhere, thank you.

Dateline 2019-06-13, Borneo Post Online:

Petronas has been urged to help Sabah oil and gas (O&G) contractors to grow as they are newcomers, thus unable to compete with other more established companies from Peninsular Malaysia and Sarawak.

Upko Youth chief Felix Saang said that Sabahan oil and gas players are new in the industry compared to their counterparts in the peninsula and Sarawak, thus they need to be given priority until they grow ‘big’ enough to compete on a level playing field.

Speaking to reporters after attending central Upko Youth Exco meeting here recently, he said he was informed many Sabahan oil and gas contractors were in limbo now as they were trapped in a difficult situation whereby they need experience and size before being able to bid for contracts while at the same time, they need contracts in order to gain experience and grow big.

Growth hit by Sabah gas snag

January 6, 2019

Dateline 2018-11-28, Daily Express:

Malaysia’s gas exports have been suffering from severe disruption since the second quarter of 2018 following a production breakdown at the Kebabangan gas field in Sabah, according to Finance Minister Lim Guan Eng, recently.

Hence, he said, the country has not fully benefited from the rising oil prices in the past six months.

“Major repairs and assessment works are still ongoing and production is only expected to return to full capacity by the middle of next year the latest,” Lim said in a statement.
He highlighted that the supply disruption has severely affected gross domestic product (GDP) growth and petroleum income tax revenue received by the government.

For the third quarter of 2018, petroleum income tax revenue declined 27pc to RM2.79 billion from RM3.81 billion in the second quarter.

Students from four universities benefit from Prestige programme

December 23, 2018

Dateline 2018-11-05, The Star:

AIMING to create a broader understanding of the natural gas industry and the importance of Health, Safety and Environment (HSE) aspects among university students, Malaysian Gas Association (MGA) held its annual Practical Environmental, Safety & Industrial Guidance for Student Engineers (Prestige) programme in Sabah recently.