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.
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Posted by Wata
May 21, 2020
Dateline 2020-04-25, FMT:
Brent crude oil prices dipping below US$30 and US oil prices turning negative for the first time in history is bad news for Sabah and Sarawak, which are dependent on oil royalties as a major source of revenue.
Analysts predict the depressed oil price will continue in the short and middle term as demand continues to fall. Oil producers like Petronas facing a glut market are riding in uncharted deep waters as Covid-19 batters the world oil markets.
For Sabah, petroleum royalty remains the highest contributor to the state coffers. For 2020, the total projected revenue from oil is RM1.7 billion. Oil royalty accounts for 40.55% of the state revenue. This estimate is based on royalty payment received from Petronas in 2019 amounting to RM1,703.5 million, the highest amount received since the Petroleum Development Act 1974 was passed.
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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.
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Posted by Wata
May 9, 2020
Lawyer are essential services.
Dateline 2020-03-18, FMT:
Petronas is still considering whether to appeal against last week’s High Court ruling that Sabah and Sarawak have the right under the Federal Constitution to impose sales tax on petroleum products.
“We have 30 days from March 13 to file a notice of appeal to the Court of Appeal,” said lawyer Malik Imtiaz Sarwar who represents the national oil and gas company.
Last week, judge Azahari Kamal Ramli, who is based in Kuching, dismissed Petronas’ judicial review application to declare the Sarawak state sales tax null and void.
Petronas had claimed that some parts of the state’s Sales Tax Ordinance 1998, which require the national oil company to pay the 5% sales tax on petroleum products to Sarawak, were unconstitutional.
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Posted by Wata
April 8, 2020
Dateline 2020-02-14, FMT:
At a dialogue session organised by the Malaysian French Chamber of Commerce and Industry, Prime Minister Dr Mahathir Mohamd played down the state-federal tussle over the 20% oil royalty. The increase was promised to Sabah and Sarawak by the Pakatan Harapan government (PH) if it came to power.
After a long period of procrastination, it is clear and transparent that the PH government has no intention of keeping its promise. The hope for more oil royalty for development funds has now been marked down as another election promise meant to be broken.
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Posted by Wata
February 15, 2020
How do you officially rubbish something? Do you issue a memo?
Dateline 2019-12-16, FMT:
The chief minister’s office today said the purchase of stakes in Petronas is not among the issues discussed by the steering committee on Malaysia Agreement 1963 (MA63).
It said details concerning oil and gas are only deliberated in special discussions between the prime minister and the Sarawak and Sabah chief ministers.
The office rubbished a claim by Sarawak DAP chairman Chong Chieng Jen that Chief Minister Abang Johari Openg had agreed in principle to purchase a stake in Petronas during an MA63 steering committee meeting.
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Posted by Wata
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.
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Posted by Wata
February 8, 2020
Interesting, why not just export one from PD?
Dateline 2019-12-13, FMT:
State-owned Sabah Oil and Gas Development Corporation (SOGDC) Sdn Bhd has signed an agreement with a private firm to build Sabah’s first petroleum oil storage and refinery with investments over US$2.3 billion (RM9.5 billion).
The agreement with Petroventure Energy Sdn Bhd will see the plant being built at the Sipitang Oil and Gas Industrial Park (Sogip) in southwest Sabah, with construction expected to take between three and five years.
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Posted by Wata
February 7, 2020
Dateline 2019-12-13, Malaysia Chronicle:
Anger is building up again in the East Malaysian states with Dr Mahathir Mohamad’s statement this week on the oil royalties.
Somehow we get the feeling that we have been led up the garden path by the Pakatan Harapan (PH) government.
Mahathir is now changing his stance and seems to have run out of ideas on how to deal with this sticky issue. His incoherent response to the oil royalties issue is sowing more confusion, creating a wider rift between the federal and state governments.
Mahathir in a Reuters interview said the government is considering selling stakes in Petronas to states where the company’s oil and gas fields are located. It seems odd that the oil-producing states like Sabah and Sarawak are now offered stakes in Petronas to help a debt ridden federal government.
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Posted by Wata
February 4, 2020
Dateline 2019-12-11, Straits Times:
Malaysia is considering selling stakes in energy giant Petronas to two of its 13 states where the company’s oil and gas fields are, Prime Minister Mahathir Mohamad told Reuters, in a bid to raise funds for the debt-laden government.
Such a move may also give states such as Sarawak and Sabah a say in the running of Petronas, the world’s third-largest exporter of liquefied natural gas.
Tun Dr Mahathir said on Tuesday in an interview that the government could not meet a demand made by the states for a quadrupling of the royalties paid by the government-owned company to 20 per cent of its profit.
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Posted by Wata
Wata - Malaysian Oil and Gas Engineer 