Oil royalty dispute to hinder Sarawak

December 13, 2018

Dateline 2018-10-23, Malaysian Reserve:

Not many appreciate the fact that Malaysia is currently one of the largest oil and gas (O&G)-producing nations in Asia, producing about 720,000 barrels of oil per day in 2017 — accounting for about 9.8% of Asia’s oil production and 73 billion cu m of natural gas in 2017, the highest in South-East Asia.

According to the Department of Statistics Malaysia (DoSM), the country’s GDP stood at RM1.17 trillion in 2017 with mining and quarrying (97% crude oil, condensates and natural gas) contributing about 9% or RM98.4 billion to the economy.

 


Standing firm over oil and gas

December 7, 2018

Dateline 2018-10-14, Borneo Post:

Chief Minister Datuk Patinggi Abang Johari Tun Openg has reiterated that Sarawak will not compromise on regulatory rights over its oil and gas activities.
He said the state had amended its Oil Mining Ordinance (OMO) 1958 to further strengthen the regulatory rights over oil and gas activities in Sarawak.
“I would like to assure you once again that we will not compromise on the issue of Sarawak oil and gas. The oil and gas are ours and the OMO 1958 gave us full control over oil and gas in our state.
“Other parties (industry players) can develop our resources and our gas but they cannot do so if they do not have licences issued by the State of Sarawak through PETROS (Petroleum Sarawak Bhd),” he said during the parade and rally in conjunction with Sarawak Yang di-Pertua Negeri Tun Abdul Taib Mahmud’s 82nd birthday celebration at Dataran Tun Tuanku Haji Bujang here yesterday.


Sarawak’s oil, Sarawak’s soil, so let us decide, says Nancy

November 13, 2018

Cool slogan. Can I steal it?

Date 2018-08-29, FMT:

Sarawakians should be the ones dictating how much oil royalty it will get as the oil is in their soil, said Sarawak MP Nancy Shukri.

Nancy, who is Batang Sadong MP, said a lot of Sarawakians were of the view that the state had been enriching West Malaysians and as a result the state had become backward and has not been getting much.

“Sarawakians have been talking. They say, ‘we see the Petronas Twin Towers, but look at us. Where are we?’

“That is why Sarawakians are now very aggressive and protective about their reserves. We explain why the Malaysia Agreement 1963 is still important because Sabah and Sarawak are still very backward in terms of development.


For Sarawak, oil royalty dispute blots Pakatan Harapan’s first 100 days

November 5, 2018

Dateline 2018-08-15, Today Online:

For Sarawakians, Pakatan Harapan’s (PH) perceived lack of commitment to the fulfilment of its oil royalties and other provisions of the Malaysia Agreement 1963 (MA63) has defined the coalition’s first 100 days in power.

Mr Abdul Karim Rahman Hamzah, vice-president of Sarawak’s ruling Parti Pesaka Bumiputera Bersatu (PBB), said PH’s failure to increase the state’s oil royalty from five to twenty per cent was “most glaring”.


Restore Sarawak’s rights to its oil

October 29, 2018

Dateline 2018-08-06, FMT:

Economic Affairs Minister Mohamed Azmin Ali has told Parliament that Pakatan Harapan’s (PH) election promise of giving a 20% “royalty” to oil-producing states was based on “a loose definition of the word… The term cash payment is not used generally, but it is generally understood to mean a royalty”.

He said a special Cabinet committee had been formed to negotiate with the oil-producing states on how to increase the 15% payments to them, on top of the existing 5% of gross profit cash payment under the Petroleum Development Act (PDA).

 


‘Politics need not dominate oil royalty talks’

October 27, 2018

And here’s me thinking, isn’t politics the point of the talks?

Dateline 2018-08-01, Borneo Post:

Chief Minister Datuk Patinggi Abang Johari Tun Openg says the issue of oil royalty needs to be discussed professionally between Petronas, representing the federal government, and Petros, which represents the Sarawak government.

He said politics must not be too dominant in the discussion, which was now ongoing between the two parties.

According to him, the discussion started following the Federal Court decision in June to dismiss Petronas’s proceeding to obtain court declaration to have exclusive ownership on oil and gas resources in the state.


‘Seek solution out of court’

October 1, 2018

Dateline 2018-07-18, Borneo Post Online:

Minister of International Trade and E-Commerce Dato Sri Wong Soon Koh waxed philosophical when asking Petroliam Nasional Berhad (Petronas) to consider withdrawing their suit on exclusive ownership of oil and gas resources in Sarawak.

Asking the court to interpret the Petroleum Development Act 1974 (PDA74) without first recognising the supremacy of the Malaysia Agreement 1963 (MA63) is like looking at a leaf on a tree without recognising that, without the roots, there would be no tree and no leaf, Wong said.

“The leaf (like the PDA) is insignificant. The roots give life to the tree just like the Malaysia Agreement gave life to Malaysia.”