August 9, 2015
Dateline 2015-07-06, TMI:
Liquefied Natural Gas (LNG) plants are unsuitable for Sabah, says Chief Minister Datuk Seri Musa Aman.
“Clearly, Sabah does not produce as much LNG as Sarawak, which has more of it and less oil.
“So an LNG plant in Sabah, such as the one operated by Petronas Bintulu, is not suitable. Sabah in any case has more oil than LNG,” Musa (pic, right) told the Sabah state assembly today.
He was replying to a question by Mohamad Alamin (BN-Bongawan), on why LNG plants were not being built in Sabah, during the First Supplementary Supply Bill 2015 debate.
Musa, who is also Sabah finance minister, said the LNG produced in Sabah would be channelled via the Sabah Oil and Gas Terminal in Kimanis through the Sabah-Sarawak Gas Pipeline to Bintulu’s LNG plant.
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Posted by Wata
July 19, 2015
Interesting, would you say? And the article doesn’t introduce Harris (tsk, tsk).
Dateline 2015-06-08, Daily Express
It is time for the Petroleum Act to be abolished and replaced by Petroleum Enactments in Sabah and Sarawak that provides for the two East Malaysian states to take over the ownership and control of all oil and gas.
Harris said the two states can from their respective organisations to undertake the exploration and development of oil and gas.
“The Federal Government’s revenue from oil and gas can come from the income tax from these state organisations. This move would streamline the Federal policy on the management of assets found in individual states, such as timber and land,” he said.
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Posted by Wata
May 21, 2015
Reading the article, I expect the Sabah Exploration and Production Company to be established soon.
Dateline 2015-04-13, Malay Mail:
Sabah actively negotiates with state oil firm Petronas to maximise petroleum income beyond just oil royalty payment, Chief Minister Datuk Seri Musa Aman told the state assembly today,
Musa said that the state also benefited from active participation in the industry and other equities it holds in Petronas, including a new unexplored oil field off the east coast of Sabah.
“Sabah is in constant discussion with Petronas on how to get more, not only from its oil royalty but also in exploring other forms of profit, including the taking over of a marginal oil field in Sandakan, which has been approved in principle (by Petronas),” he said.
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Posted by Wata
February 28, 2015
Dateline 2014-12-11, Free Malaysia Today:
The Opposition wants to know why Sabah is being given stakes in Production Sharing Contracts (PSC) in the oil and gas industry and Sarawak being given “the short-end of the stick”.
“Sabah has done better than Sarawak in asking for PSCs,” said Batu Lintang Assemblyman See Chee How in a statement implicitly criticizing Sarawak Chief Minister Adenan Satem for his weak leadership on the issue. “We are getting a raw deal.”
“Sabah has entered into upstream petroleum development.”
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Posted by Wata
November 1, 2014
Yeah, PETRONAS. I’d set up some more security around Menara PETRONAS, in case there are ‘untold incidents’. Or move Menara further into the suburbs.
Dateline 2014-08-14, Free Malaysia Today:
The United Pasok Momogun KadazanDusunMurut Organisation (Upko), which recently urged the federal government to hand over its five per cent oil royalty to the Sabah government has come up with new demands.
The party now wants Petronas, the national corporation, to confine itself to the peninsula if it can’t meet a 20 per cent oil royalty demand by Sabah.
It also wants the National Petroleum Advisory Council, provided under Clause (5) of the Petroleum Development Act 1974 (PDA), to be set up as soon as possible.
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Posted by Wata
October 23, 2014
Dateline 2014-08-10, Borneo Post Online:
United Pasokmomogun Kadazandusun Murut Organisation (UPKO) yesterday urged the Federal Government, which is receiving a five per cent share of the oil royalty from Petronas, to instead give it to the oil producing states.
“We in Upko have been saying all along, there is an urgent need for Sabah, being an oil producing state, to be given more than the five per cent share it is getting at the moment. I wish to reiterate our party congress resolutions for several years now, that the most practical solution is for Putrajaya to give its share to Sabah. This is doable,” said Upko acting president Datuk Madius Tangau.
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Posted by Wata
October 18, 2014
Dateline 2014-08-07, Borneo Post Online:
An increase in cash payments, which some people prefer to call royalty, by Petronas to the state and federal governments would have an adverse impact on the project viability and the industry at large, according to the vice president of Malaysia Petroleum Management, Adif Zulkifli.
He said that if the cash payments were to be increased to 20 per cent for Sabah, some projects undertaken by Petronas may be in jeopardy.
The immediate impact would be projects being dropped by foreign investors, investors’ confidence will be eroded and the country’s energy security will be at risk, he said.
Adif said the mid-term impact would be contract and opportunity losses for supporting industry, no further exploration activities and retrenchment.
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Posted by Wata
October 14, 2014
I pronounce MOGSC as Mog-see. SOGSC, Sog-gy? And how come there is no mention of MOGSC in the article?
Dateline 2014-08-02, Malay Mail:
A newly-formed group is aiming to provide oil-and-gas sector suppliers in Sabah with the needed skills and contacts to tap into the industry that offers tens of billions of ringgit in jobs.
Calling itself the Sabah Oil and Gas Services Council (SOGSC), it says it will aggressively conduct technical programmes in collaboration with key industry players such as Petronas to enable members to gain the expertise to service such companies.
“The potential for Sabah’s oil and gas industry is extremely high, and we need to leverage this to better benefit Sabahan service providers.
“Currently they are not well-equipped with the right skills and knowledge to support the industry and jobs are going out to foreign companies from West Malaysia and elsewhere,” said SOGSC secretary Willie Ng during a press conference here today.
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Posted by Wata
September 6, 2014
Oo, Perkasa is an ‘extremist fringe group’. This comment is made by a group that doesn’t feel safe enough to operate in Malaysia.
Dateline 2014-06-27, FMT:
The UK-based Borneo’s Plight in Malaysia Foundation (BoPIM), a human rights organisation on Sabah, Sarawak rights issues, has expressed dismay that the national oil corporation Petronas and an extremist fringe group in the corridors of power are engaged in a war of words over who owns the country’s oil and gas resources.
“There are no two ways about it,” said BoPIM President Daniel John Jambun in a telephone call to FMT in Kota Kinabalu. “The oil and gas reserves in the country belong, by and large, to the people of Sabah and Sarawak and no one in the peninsula should imagine that it belongs exclusively to their community.”
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Posted by Wata
August 15, 2014
Dateline 2014-06-16, FMT:
In Malaysia, the politics of oil royalty has always hogged the limelight. It has always been a useful agenda to seek public attention. Thus, the recent bill introduced by newly-appointed Sarawak Chief Minister Adenan Satem in the State Legislative Assembly to increase oil royalty from 5% to 20% has caught public attention.
The fact that the federal government has also agreed to seriously consider the proposal has given the people in the state new-found hope.
Demanding higher royalty is not a new political agenda for both Sabah and Sarawak. In fact, it is a long overdue issue. Let’s take a brief glance at history. Before the formation of Malaysia, the United Kingdom had declared rights over the Malaysian continental shelf for Sabah and Sarawak. Basically this meant ownership rights over offshore resources including petroleum.
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Posted by Wata
Wata - Malaysian Oil and Gas Engineer 