Hornbill Unleashed

November 8, 2014

20 per cent oil royalty or no deal!

Filed under: Politics — Hornbill Unleashed @ 8:00 AM
Tags: , , ,

sarawak oil300Joe Fernandez

Petronas has threatened to stop investing if the Sarawak Government continues to demand 20 per cent oil royalty.

The Opposition, in a pre-emptive move on the eve of the Sarawak Assembly sitting, has warned Chief Minister Adenan Satem against settling for anything less than 20 per cent oil royalty in its negotiations with Petronas, the national oil corporation.

“It would be an ‘insult’ to Sarawakians if we are only given corporate social responsibility (CSR) contributions,” said PKR Sarawak vice chief See Chee How. “As an oil producing nation, Sarawak’s entitlement to a fair oil and gas royalty should be seen as its right.”

He was expressing his happiness that Adenan would be briefing the Sarawak Assembly on the oil and gas issue during the forthcoming sitting scheduled for Nov 10.

“These natural resources are ours and there should be a process so that eventually we will have control, management and production of all resources that are vested in and on our land,” argued See who is also Batu Lintang Assemblyman.

See belaboured the point that the process of negotiations with Petronas and the Federal Government should aim at eventually making Sarawak the proprietors and beneficiaries of all its natural resources including oil and gas resources.

Sarawak should also demand for the opportunity to emulate Petronas in the production sharing agreements, continued See, and the Sarawak Government be given significant shares in oil and gas joint ventures, “thereby giving more opportunities for Sarawakians to learn and eventually take over the joint venture operations in the nation”.

He advised Adenan not to fall for the Federal Government’s oft-repeated “trick” that in lieu of a higher oil royalty, the Sarawak Government will be provided with more development funds and grants.

“Unfortunately, from the Federal Budget 2015, you can see clearly that there was nothing mentioned about the oil and gas royalty and there was nothing to show that more Federal grants are to be channeled to Sarawak and Sabah,” fumed See.

“If you look at the RM 50 billion development Budget, the focus is on Peninsular Malaysia.”

It was unfortunate the Opposition was not included in the negotiations with Petronas and the Federal Government, lamented See, “but it would nevertheless continue to provide suggestions and opinions on the matter and monitor the negotiations closely for the interest and benefit of Sarawak”.

“We have given Adenan some specific questions in areas that he probably can focus on when talking to the Federal Government and Petronas,” disclosed See.

Petronas has threatened to stop investing in production in new areas if the Sarawak Government continues to demand 20 per cent oil royalty, up from the present measly five per cent.

The consensus of opinion in Sarawak across the political divide is that this – Petronas pulling out from new areas — would be a blessing in disguise.


  1. Why there is a need to form committees to have negotiation?

    Returning SarawaK’s rights need to go through the formal process through amendment of the relevant Acts or by the supreme court declaration. How in the world will Petronas simply surrender oil and gas fields to Sarawak.

    Comment by Joe — March 12, 2018 @ 10:32 AM | Reply

  2. That would be good if Petronas pull out from sarawak. Sarawak has more then enough pool of talents in the oil and gas industry to run all those installations and refineries once Petronas leave.
    Refusing to give Sarawak the mere 20% loyalty is tantamount to stealing and cheating us Sarawakians and thats been going on for 30 years or more?

    Comment by brian — November 10, 2014 @ 6:22 PM | Reply


    Comment by Geronimo Miller — November 9, 2014 @ 10:26 PM | Reply

  4. We are not interested in the moderate stance of Sarawak CM and Sarawak lawmakers on religious and racial issues in response to the self made situation in Peninsular Malaysia. We demand that Putrajaya allow a referandum for Sarawakians and Sabahans to decide on our future and destiny in the Federation of Malaysia.

    Comment by Awaken Dayak — November 9, 2014 @ 12:20 PM | Reply

  5. We can dream swak gonment can earn 100%, but you forget that yr g’father is still alive across river.

    Comment by Concern kenyalang — November 9, 2014 @ 10:59 AM | Reply

  6. Because petronas has that colonialist mentality Sarawakians must prevent it from further exploiting and robbing us of our oil. Apparently they think Sarawak has no ability and knowledge in oil and gas exploration! They despise Sarawakians to such low a level.

    Comment by telang usan — November 8, 2014 @ 8:18 PM | Reply

  7. Sarawak government can own 100% of Petrol Sarawak which shall develop all the oil and gas resources within Sarawak shores. We do not need Petronas. We do not need UMNO Baru controlled BN government. A new state government under Pakatan Rakyat can make all these possible and all Sarawakans shall share part of the oil and mineral windfall taxes.

    Comment by Mata Kuching — November 8, 2014 @ 6:11 PM | Reply

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