Politics of oil royalty

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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Sarawak’s oil royalty poser

August 3, 2014

Dateline 2014-06-10, Malaysia Chronicle:

SARAWAK Chief Minister Tan Sri Adenan Satem, just 100-odd days in office, has made a demand for an increase in oil royalty to the state from 5% to 20% a key agenda of his administration.

Last month, the state assembly passed a resolution to this effect and Adenan repeated it last week, in the presence of Prime Minister Datuk Seri Najib Razak in Miri.

Najib said the federal government would consider the matter.

Those who are familiar with how the formula of royalty payment to the oil producing states of Sabah, Sarawak and Terengganu works are astounded by the demand, especially asking for a 15% increase, which is ridiculously high.

It calls into question whether the Sarawak state government understands the formula, which I must add here, is rarely explained to the public by Petronas.

Hence public ignorance of the oil royalty issue.

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Flesh out pledged Sarawak oil royalty hike, Putrajaya told

July 25, 2014

Dateline 2014-06-03, Malay Mail:

Putrajaya must set a deadline to discuss revising royalty payment for oil-producing states to demonstrate the sincerity of the prime minister’s pledge to consider increasing the quantum, Sarawak PKR vice-chairman See Chee How said today.

See told a press conference at the state PKR headquarters here that verbal assurance alone was not enough, and that such an increase must not come in the form of development grants as these were already the federal government’s obligation.
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PM: We’ll consider Sarawak’s request for higher oil, gas royalties

July 22, 2014

Dateline 2014-06-22, The Rakyat Post (huh?)

The federal government will give utmost consideration to Sarawak’s request for higher oil and gas royalties, said Datuk Seri Najib Razak.

The Prime Minister said the federal government had no qualms in negotiating on any matters with the state government over its interests.

“The federal government will give utmost consideration to this matter (request for higher oil and gas royalties),” he said at the Malaysia Gawai Dayak Open House 2014 at Dataran Kipas here tonight.

Sarawak Yang Dipertua Negeri Tun Abdul Taib Mahmud and Chief Minister Tan Sri Adenan Satem were present.

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S’wak requests for special natural gas quota

June 28, 2014

Dateline 2014-05-06, Free Malaysia Today:

Sarawak has forwarded an official request to the federal government to be allocated a special natural gas quota from what is being produced in the state.

Assistant Minister of Industrial Development (Investment and Promotion) Julaihi Nahrawi said the natural gas quota would be used to meet the needs of power stations and downstream activities.

“We hope to receive a positive answer from the federal Government (on the request),” he added.

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Sarawak can go it alone – Dixon Fong

June 27, 2014

Dateline 2014-05-01, The Malaysian:

I read Brewin Edward Emprang’s article and found it mind-blowing. The author might have skipped some fundamentals while expressing his views. I am a Sarawakian and thus, I hope I am not wasting your time here.

The author mentioned that Petronas does not have the equipment and expertise needed for oil exploration and excavation.

I beg to defer on this statement. Petronas, one of the Fortune 500 companies, has the talents required to be profitable on an annual basis.

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Sabah should join S’wak on oil royalty hike: PBS

April 22, 2014

I really don’t know why Sabah and Sarawak have been in the news frequently this year. Any apologists who want to make a comment?

Dateline 2014-03-20, Daily Express:

Sabah should work together with neighbouring Sarawak in pursuing an increase in the oil and gas royalty and turn this into a reality, said Parti Bersatu Sabah (PBS) Information Chief Datuk Jahid Jahim.

He believes there is nothing wrong for the State Government to work together with its Sarawak counterpart to make a joint request to the Federal Government to increase the rate of oil and gas royalty presently received by both states.

“I think we (Sabah and Sarawak) should work together like what we have done in 1963 when we formed the Federation of Malaysia together. It would be more synchronised and justified if both the states work together on this,” he said.

Saying an increase in oil and gas royalty can be used to support additional development of the State and the people to be on par with what is enjoyed by fellow Malaysians in the peninsula, Jahid, who is formerly Tamparuli Assemblyman, felt the recently announced discovery of oil fields off Sabah which is timely can also be considered as good justification for the request.

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Petronas pipeline has destroyed rainforest, says Swiss-based advocacy group

April 8, 2014

Of course construction destroyed rainforest. But have you seen the risk assessment? I haven’t, those in the know, send me a copy please?

Dateline 2014-03-03, Malaysian Insider:

The Swiss-based rainforest advocacy group Bruno Manser Fund (BMF), in a new attack on Sarawak, claimed the 500km Petronas gas pipeline (SSGP) has left a “trail of destruction” in the rainforest between the Sabah oil and gas terminal (SOGT) in Kimanis to the liquefied natural gas (LNG) plant in Bintulu, Sarawak.

BMF, on its new Sarawak geoportal, said that by shrouding the project in secrecy and for its failure to disclose the exact line of the SSGP, it has given rise for concern.

It claimed the less than transparent project had forced local communities to erect several blockades out of concern for damage to their environment and illegal extraction of timber for the construction of the pipeline within native customary rights (NCR) lands through which the line passes.

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Once ‘open’ Petronas now ‘closed’ to Borneo

March 8, 2014

Really? I thought that there was a pretty good clampdown in Sabah and Sarawak, with other Malaysians requiring a work permit to work there. I guess they should increase the cost of coffee to give these permits out to applicants from the Western Eleven?

Dateline 2014-01-28, FMT:

National oil and gas company, Petronas, which was once transparent and receptive to Sabah and Sarawakian employees underwent somekind of a  change in the 1990s, so much so that it reclused itself from Borneo, said opposition PKR.

Party vice-chairman See Chee How  said that in the past Petronas had been transparent about the number of Sarawakian workers it employed.

“But this openess diminished. There has been no disclosures in the last decade.

“Petronas was once conscientious and open with its employment of Sarawakians in the corporation’s operations in the state.

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Jabu lauds Shell for setting up learning hub in the state

October 26, 2013

Now give training to local engineering firms at a nominal cost (say, one Big Mac meal), and then I really start jumping for joy.

From the Borneo Post onlne, dateline 2013-09-06:

Mri: Shell Malaysia opened its Asia Pacific Wells Learning Hub, the first in the Asia Pacific region and third globally after its Houston Centre in the United States and Rijswijk Centre in the Netherlands, here yesterday Officiating at the official

opening, Deputy Chief Minister, Datuk Patinggi Tan Sri Alfred Jabu Numpang said the state strongly supported Shell and other oil and gas companies in continue developing their operations in the state.

Praising Shell for setting up the learning hub in the state, he added that the state government had always been appreciative of positive initiatives in technological advancement.

“The applications of technological knowledge are important tools to provide cutting edge amidst global competition for productivity, efficiency, scientific interest, environmental compliance and profitability.

“I am very happy today to witness Shell Malaysia bringing advance training facilities for petrol chemical, oil and gas onshore, located here,” said Jabu.

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