Petronas confirms Sarawak’s lawsuit against it

January 24, 2020

Dateline 2019-11-25, Bernama:

Petroliam Nasional Bhd (Petronas) today confirmed that the Sarawak government and the comptroller of state sales tax have filed a lawsuit against it over the alleged failure to pay sales tax to the state.

“Petronas confirms that the comptroller of state sales tax of Sarawak and the Sarawak state government have filed an action against Petronas before the High Court of Kuching on Nov 21, 2019, for non-payment of the Sarawak sales tax on petroleum products,” the national oil company said in a statement.

Malaysian state takes court action against Petronas to recoup tax – Bernama

January 19, 2020

Dateline 2019-11-21, Reuters:

Malaysia’s state of Sarawak filed a writ summons and statement of claim against national energy firm Petroliam Nasional Bhd on Thursday to recover taxes owed, according to media reports.

National news agency Bernama reported that the company, better known as Petronas, was said to be the only oil and gas company operating in the state that had not paid the 5% state sales tax imposed at the start of this year.

20pc oil royalty demand still part of talks with federal govt, says Sarawak CM

January 7, 2020

He says, she says.

Dateline 2019-10-31, Malay Mail:

The Sarawak Chief Minister’s Office (CMO) today made it clear that the state government has not dropped its 20 per cent demand on oil royalties from the federal government as reported by local news portals.

“This office wishes to clarify that the state government has not dropped the demand and that current negotiations with the federal government are based on that demand,” the CMO said in a statement.

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.

Sarawak cannot impose sales tax on petroleum products, says expert

December 8, 2019

Dateline 2019-10-08, FMT:

 The Sarawak government’s move to impose sales tax on petroleum products may hit a snag as the state can only impose the tax on items under the state list of the Federal Constitution.

Constitutional law expert Shad Saleem Faruqi said petroleum products are stated in the federal list under the Ninth Schedule of the constitution.

This follows a dispute between Petronas and Sarawak on the state’s rights to impose sales tax on petroleum products under Article 95B(3) of the Federal Constitution and Sales Tax Ordinance 1998.

Sarawak has new formula for oil revenue-sharing, says CM

November 24, 2019

Dateline 2019-09-28, FMT:

The Sarawak government says it has a new formula on revenue-sharing with Petronas in a bid to recover its losses from royalties on natural gas and crude oil obtained from within its waters.

Chief Minister Abang Johari Openg said the new formula had been submitted to the federal government.

He said he was aware that government-owned Petronas is also an international company but that did not mean that the company could deprive the state of its revenue.