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.


Sarawak govt to take Petronas to court if 5pc sale tax not paid

November 23, 2019

Really?

Dateline 2019-09-29, Malay Mail:

Sarawak Chief Minister Datuk Patinggi Abang Johari Openg today said the state government is prepared to go to court to get its share of revenue from Petroliam Nasional Berhad (Petronas), if the oil company does not pay the 5 per cent sales tax on the export of petroleum and petroleum products.

He said the state is within its rights to receive the share as enshrined under the Malaysia Agreement (MA63) and the Federal Constitution.


About half of new gas resources to be kept as feedstock, says Sarawak CM

November 12, 2019

Dateline 2019-09-11, FMT:

About 40℅ to 50% of new findings of gas resources in Sarawak must be retained as feedstock for gas- related industries in the state, Sarawak Chief Minister Abang Johari Openg said today.

He said this was to ensure Sarawak had sufficient gas feedstock to drive downstream activities of the natural gas industries in Sarawak, particularly the petrochemical industries.

Abang Johari announced this during the launch of Sarawak’s first methanol plant – Sarawak Petchem – at Tanjung Kidurong in Bintulu here, today.

 


Exit Malaysia, GPS urged after data on Sarawak oil and gas reserves denied

November 4, 2019

Dateline 2019-08-27, FMT:

Petronas has no right to keep the Sarawak government in the dark about the amount of oil and gas reserves in Sarawak, Parti Bumi Kenyalang president Voon Lee Shan said.

He said this following Sarawak Chief Minister Abang Johari Openg’s claim that Petronas had refused to disclose any data or information on the state’s oil and gas reserve to the state government.


Sabah must control own resource use

September 3, 2019

Dateline 2019-07-17, Daily Express:

Sabah’s rich resources must be prioritised for use towards the prosperity of Sabah and benefit the people, and as a nation, Malaysia, benefits from taxes and vibrant economic dynamism.

Minister of International Trade and Industry Datuk Darell Ignatius Leiking said as he made it clear that he wears two hats, one as a Federal Miti Minister responsible for the whole country, and as a Sabahan politician.

Sabah and Sarawak need people who work for the good of the state instead of their pockets. Sabah has talents locally and overseas to be lured back, who can manage its rich natural resources well for future generations, he said.

Sabah has the talents but there is a need to create more job opportunities “to bring them back.”


CM: Oil and gas complex will boost development in Sarawak’s north

July 8, 2019

And China has a base in North Sarawak.

Dateline 2019-06-10, The Star:

A proposed integrated oil and gas complex in Lawas will help boost development in Sarawak’s northern region, says Datuk Patinggi Abang Johari Tun Openg.

The Chief Minister said the US$5bil (RM20.8bil) project by China’s Beijing Beca Sci-Tech Co Ltd and Sinopec Engineering Incorporation would create jobs and spread development to the area.

“This will be a game changer for northern Sarawak, particularly Lawas and Limbang.