After years of trying to get the Federal Government to increase its oil royalty payouts, the Sabah state government is cutting straight to the source, as it were: it’s looking to secure a stake in national petroleum corporation Petronas’s profits.
Sabah Chief Minister Datuk Seri Musa Aman said this new strategy is a better way of ensuring Sabah gets more from its offshore oil and gas resources than hoping for Putrajaya to increase its royalty payments to the state.
“We are asking for a 25% stake in Petronas Sabah Urea Amonia (Samur) project in Sipitang,” he said to Ruben Sario of The Star Online.
“That equity will eventually translate into billions of ringgit in revenue for the state.”
Musa also expressed an interest in seeing more local firms participating in the oil and gas industry.
“It is not necessary for us to rely on collecting revenues but instead become key players in activities like offshore exploration activities,” he added.
Prime Minister Datuk Seri Najib Tun Razak had said that the Federal Government and Petronas would decide on various ways they could improve Sabah’s economy, including Petronas stepping up its corporate social responsibility (CSR) initiatives in the state.
Najib said there were many methods to increase Sabah’s enrichment from its oil and gas reserves – just not necessarily an increase in oil royalties, as had been mooted by the federal Pakatan Rakyat opposition.
