Sabah to follow Sarawak in pursuing oil and gas rights

December 24, 2020

Dateline 2020-12-08, Straits Times:

Sabah will follow Sarawak in pursuing its rights, particularly where oil and gas are concerned.

Deputy Chief Minister Datuk Seri Jeffrey Kitingan congratulated Sarawak for reclaiming its rights, adding that the Sabah government would ensure the same for the state.

He was referring to the Sarawak government signing a commercial agreement with Petroliam Nasional Bhd (Petronas) on Monday which allows the state, through its subsidiary Petroleum Sarawak Bhd (Petros), to play a bigger role in the oil and gas industry through cooperation with Petronas.

“Kudos to the Sarawak government for reclaiming their rights. It is no secret that the Sarawak government had been doing all the heavy lifting in this fight and we are grateful for their efforts.


Warisan rep chides ex-colleague over petroleum sales tax issue

December 9, 2020

Dateline 2020-11-12, FMT:

There is no truth to claims that former Sabah chief minister Shafie Apdal did not pursue the 5% sales tax on petroleum products because he was worried about offending former PM Dr Mahathir Mohamad.

Warisan’s Merotai assemblyman Sarifuddin Hata came to his party president’s defence today following comments by former assistant finance minister Kenny Chua on the issue.

Yesterday, Chua had agreed with STAR’s Tulid assemblywoman Flovia Ng’s allegation over Shafie’s refusal to pursue the matter until after the fall of the Pakatan Harapan government in February this year.


Malaysia’s Petronas to pay Sabah state $303 million in sales tax next year

November 30, 2020

Dateline 2020-11-08, Reuters:

Malaysian state-owned energy giant Petronas is expected to pay the resource-rich state of Sabah 1.25 billion ringgit ($303 million) in sales tax next year, state media said.

Sabah Deputy Chief Minister Jeffrey Kitingan said Prime Minister Muhyiddin Yassin had agreed for the state to collect the 5% tax from Petronas next year, Bernama news agency said late on Saturday.


A plea to CM Hajiji: Halt Shell’s move to Miri

November 13, 2020

Ah, politiking continues.

Dateline 2020-10-23, FMT:

Shell’s announcement on Oct 15 that the Plaza Shell office in Kota Kinabalu would be closed, with a relocation of all Sabah staff to Miri next year, was met with silence.

The Kota Kinabalu office was set up in November 2015 with promises of Shell’s significance presence, strategic partnership and offer of measurable progress for the state. This change of commitments, a sad truth on the change of events, draws much reservation, suspicion and unveils broken promises from Shell to the state, its people and communities.

The well established and progressive 200 Shell staff, occupying four floors of the 14-storey Plaza Shell, a distinguished landmark in Kota Kinabalu located strategically in the city’s business district may see the last of its pivotal presence very soon. Their lives, sadly, may never be the same again.


Sabah’s oil and gas dealt a severe blow by Shell

November 12, 2020

IGL is ready to step into the void, using the concept community owned entities (COE) to bring wealth to the local landscape. I would have called it community owned commercial kickstarters, but the acronym would have been hilaaaariuos.

Dateline 2020-10-23, The Malaysian Insight:

SHELL’S announcement on October 15 that the Plaza Shell Office at Kota Kinabalu will be closed with a relocation of all Sabah staff to the new Miri headquarters in 2021 was received with unceremonious silence.

The Kota Kinabalu office was set up in November 2015 with promises of Shell’s significant presence, strategic partnership and offer of measurable progress for the Sabah state. This change of commitments, a sad truth on change of events, draws much reservation, suspicion and unveils unprecedented break of promises from Shell to Sabah, its people and communities.

The well-set and progressive 200 Shell staff occupying four floors of the 14-storey Plaza Shell, a distinguished landmark in Kota Kinabalu being strategically located in the city’s business district may see the last of its pivotal presence very soon. Their lives, sadly, may never be the same again.


It’s not for Bung to say we can’t get 20% oil royalty, says Sarawak minister

October 29, 2020

Dateline 2020-09-25, FMT:

 A Sarawak minister said Sabah Umno chief Bung Moktar Radin has no say on whether Sabah and Sarawak can get 20% oil royalty from Putrajaya.

“It’s not for Bung to decide on whether Sabah or Sarawak can get the 20% oil royalty or not, ”Sarawak’s Tourism Minister Abdul Karim Rahman Hamzah told FMT.

“Whether Sabah or Sarawak get the 20% oil royalty wholly depends on the executive’s decision. If the prime minister agrees, then it will happen. Therefore, I’ll take his statement as his personal opinion only,” he added.

He was commenting on Bung’s recent statement that there was no way for Sabah and Sarawak to get 20% oil royalty from Putrajaya.


No way Sabah, Sarawak can get 20% oil royalty from govt, says Bung

October 22, 2020

Dateline 2020-09-17, FMT:

Sabah Barisan Nasional election chief Bung Moktar Radin doesn’t understand why Pakatan Harapan has pledged to increase the oil royalty payment for Sabah and Sarawak to 20%, claiming it could not be done.

Bung said increasing the oil royalty for the states was not easy as it involved pre-existing agreements with oil corporations, including international ones.

“We have done our research on the Malaysia Agreement 1963 on oil royalty and there is no way we can get the 20% from the federal government,” he told reporters after a ceramah in this interior Sabah district today.

“The agreement was signed after our independence with international corporations, including big firms from outside the country.


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.


Sarawak set to change O&G industry

September 6, 2020

Dateline 2020-07-04, Malay Mail:

THE ongoing discussion between officials from Sarawak, Petroliam Nasional Bhd (Petronas) and the federal government is one that is being closely watched by all parties.

The outcome of the talks is likely to be historic for Malaysia’s oil and gas (O&G) sector. It could also have an impact on the coffers of both the federal government and that of the state of Sarawak. Petronas’ earnings and business activities are also at stake.

Sabah, another large O&G resource hub, has also staked a claim for more tax collections from Petronas.


CM: Sabah will continue to pursue 20pc from Petronas

June 9, 2020

Dateline 2020-05-14, Malay Mail:

Petronas’ new agreement with Sarawak does not have any bearing on Sabah, who just imposed a 5 per cent sales tax on petroleum products beginning last month.

Sabah Chief Minister Datuk Seri Shafie Apdal said that the state was sticking to its 5 per cent sales tax while it continued to pursue a 20 per cent oil royalty deal with the federal government that it has been eyeing for decades.

“That’s their negotiations with Petronas. We’ve already imposed the sales tax. We have an understanding with them and other petroleum companies,” said Shafie when asked to comment on Sarawak’s new agreement with Petronas and the federal government.