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Oil royalty to states stays at 5pc

Posted by admin

Wednesday, 14 May 2008 08:46

(NST) THE five per cent royalty going to Sabah, Sarawak and Terengganu on oil and gas extracted by Petronas will not be reviewed.

Minister in the Prime Minister's Department, Senator Datuk Amirsham A. Aziz, said financial considerations prevented the government from acceding to their requests for an increase in royalty.

This was because any increase in royalty to the states would eat into the 10 per cent royalty the government received from Petronas.

He was replying to a supplementary question from Alexander Nanta Linggi (BN-Kapit) on whether the federal government would look into increasing its royalty from 10 per cent to 20 per cent.

To another supplementary question from Datin Seri Dr Wan Azizah Wan Ismail (PKR-Permatang Pauh), Amirsham said the formula involving royalty on oil and gas saw the government receiving 10 per cent, of which five per cent was given to the three states.

To the original question from Dr Wan Azizah, Amirsham said that between 2004 and last year, Petronas paid a total of RM26.839 billion in royalty to the federal government, Sabah, Sarawak and Terengganu.

The Federal Government received RM13.4 billion, Terengganu (RM7.3 billion), Sabah (RM1.2 billion) and Sarawak (RM4.8 billion).

Amirsham said that based on current oil extraction methods, crude oil and oil condensates were expected to last 22 years while gas reserves would last 39 years.

"Even though there are many years for the reserve period (oil and gas) to expire, the fact is that the country also imports oil and gas to meet some local energy needs.

"Thus, the country is expected to be a net energy importer by 2014," Amirsham said.

To another question, Amirsham said oil production in Terengganu, Sabah and Sarawak for the financial year ending March 31, last year, stood at 241.3 million barrels of crude oil.

Gas production was 2,081.4 billion square feet, he added.

He said crude oil and gas products exported by the subsidiaries of Petronas were sold at current world prices whereas the price for domestic sale of gas-based products for the electrical and non-electrical sector was fixed by the government.

Comments (18) Add Comment

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written by Don Corleone, May 14, 2008 08:54:39

RM7.3 BILLION for Trengganu over the past 3 years.....no wonder Idris Jusoh was fighting tooth and nail to hang on as MB....no wonder Badawi called the Sultan's act unconstitutional.

Seems like stealing is constitutional to the UMNO thieves. Good that the tap is finally turned off - and attention must now be focused on what happened to the RM 7.3 billion in recent years.

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written by gaman, May 14, 2008 09:07:30

Hidung Sabah dah di ikat.....Anak tiri namanya......Tak ada hak menuntut lebih dari 5%......Kesian betul.....Kan Sultan Brunei pandai......tak payah susah nak ganduh hal % tuntutan.......semua 100% hak milik sendiri punya......

Kenapa Sabah jadi begitu? Tanyalah pemimpin-pemimpin Rakyat Sabah.

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written by slash n burn, May 14, 2008 09:17:57

Sultan Brunei is the smartest on the oil issue in Borneo. Doomed if His Highness joined Malaysia.
As for Sabah, you always be begging to Malaya thieves who rob your own house!

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written by hemlock, May 14, 2008 09:40:11

Can we have an independent audit on what exactly that RM26.839 billion has been spent on?

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written by cwy, May 14, 2008 09:56:57

It's time to join PR!
You'll get 4 times of what you get from UMNO government!
Why wait?

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written by Hope4all, May 14, 2008 09:58:35

Thanks for this Amirsham, thanks for helping Sabah to go PR.

Your reasons of financial consideration preventing the increase in royalty is not only illogical but can be rebutted in a 1000 different ways.

But for now, thanks.

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written by legaleagle, May 14, 2008 10:20:57

What is to prevent Petronas from paying the government more than 10%? Petronas belongs to the government! Why should Petronas keep 90% of the profits, do whatever it likes with it and not accountable to even Parliament, but only to the PM, and spend the money on projects not beneficial to the people. And it even pays an advisor in TDM who sabotages the PM?

Petronas can pay at least 25% to the oil producing states, the federal government still has the 5% while the states can get 20%.

The way the BN government respond to this request shows clearly to me that BN is definitely on the way out, sooner than later!

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written by Raja Gasper, May 14, 2008 10:25:56

Why cannot review ? of course BN Petronas unable to do that due to uneffective
and lazy managements but the Pakatan Petronas able to do that due to compentent
managements.

If Petronas still refuse then it is time to close them soon and all managements
will be taken by the Federal Goverment of Pakatan Rakyat ending politics mono
poly of bussiness collobrations.

Get rid of corruptions ! thus Pakatan Rakyat able to do that Petronas and your
days are numered.Becareful about that event soon to be happen.Live not invain.

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written by Malaysiaku, May 14, 2008 10:37:52

Now, that you Sabahans have heard it from the horse's mouth, hope you guys are feeling great for your tyranny on your own kind. Now get to your stables and work lest the ISA, the OSA, the PPP, the TKO, the XXX and what-have-yous are used on you ungrateful Sabahans and Sarawakians!

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written by Malaysiaku, May 14, 2008 10:40:27

"What is to prevent Petronas from paying the government more than 10%? Petronas belongs to the government! Why should Petronas keep 90% of the profits,"

To answer this question, perhaps by keeping the money in a 'private' company, the money can be used with 'less scrutiny' than if it was in the Govt's coffers?

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written by goman2k3, May 14, 2008 11:32:41

Sarawak produces about 500-600 mboe per day and at today price that is 20-25 billions US$ per year or 60 to 75 billion RM!!! PETRONAS should pay income tax and not royalty. Royalty to government is never heard of. It is time to increase the state royalty to 25%.

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written by anatomy, May 14, 2008 12:31:46

Cat & mouse game again,.....while we are debating on the matter...someone is making bid time ( with a big laugh) come on Rakyat....lets hit the right nail right to it's heart and hit it hard.
YM DSAI, you know what i'm talking about......let us 'walk the talk'

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written by joeawk, May 14, 2008 15:08:24

Hahaha, UMNO is saying " Go fly Kite" to all the demand for higher royalty. Such is UMNO's arrogance.

If the leadership of the oil producing states are not shock, they should be frightened.

Is there something we do not know. Will there be an earthquake.

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written by legaleagle, May 14, 2008 15:16:49

In the normal course of nature, a tsunami would follow an earthquake. The tsunami has hit Malaysia on 8 March from the North; but the earthquake will only come afterwards, from the East, around Malaysia day on 16 September 2008.

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written by Beezee_Beezee, May 14, 2008 15:43:52

With the 26 Billions to T"gnu, the state must have sky scrapper by now. The last time I went to T"gnu was in 1990..Dun know now surely not less than JB or Penang.....

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written by mgeo, May 14, 2008 17:08:49

(a) The ratio of amounts stated for Federal to States is not 10:5.
(b) What about the remaining 85%?
(c) In Terengganu, the tap has not been turned off. The MB is still in the dark. The oil states are still told that their money is being routed to "projects" within their borders - by the parallel-administration secretive conduit.

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written by ez24get, May 14, 2008 17:46:06

Terengganu
Oil Royalty - RM7.3 billion
Population â€“ 1.0 million
Oil Royalty per Person â€“ RM7,300

Every person in Terengganu should receive RM7,300 from the oil royalty. They should be rich.

But why is Terengganu among the poorest state in Malaysia?

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written by shissun, May 14, 2008 23:24:51

To all Sabah & Sarawak folks,
Are you going to let this UMNO drill dry your black gold and in return give you a peanut while they happily enjoy their loots with their mistresses on their private jets and yachts. I know you can't do anything because your MPs are not willing to rock the boat. I hope you all will pray with me for God to grant the sense of righteous to your MPs. Believe me, brighter days will be ahead of you and Borneo will never cry again!
To all Sabah & Sarawak MPs,
You are going to be queried by God and your next generation on what you have done to your people while you have the ability. Believe me, you have the choice on how to fulfill your obligation. Stick to your oath-of-office that you are going to put the people interest first. Serve with your clear conscience. I begging you.

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