Hornbill Unleashed

June 12, 2017

Sarawak to form state company for oil and gas exploration

Filed under: Politics — Hornbill Unleashed @ 8:02 AM

abang-johari-petronasThe Sarawak government is setting up a state-owned firm to work with national oil and gas company Petroliam Nasional Bhd (Petronas) to conduct explorations for fuel resources within the state’s territorial waters.

Chief Minister Abang Johari Openg said the move was part of the state’s initiative to have a more significant stake in the industry within its borders.

“We want to be an active participant in the oil and gas industry in an orderly and more structured manner,” he was quoted by online portal Sematong Express as saying yesterday.

He said this was in addition to the state’s call for an increase of between 5% to 20% in oil royalty.

“This is something new because we want to form the company that will be working together with Petronas, especially in production-sharing contracts,” he said during a breaking of fast event with Sarawakians in Kuala Lumpur.

He said Petronas was agreeable to the proposal.

He added that he had met with Petronas president Wan Zulkiflee Wan Ariffin on the matter earlier yesterday.

“With such a collaboration, we will be able to implement our policies in the oil and gas industry,” he said.

On May 22, Abang Johari announced that the state was putting on hold further talks with Putrajaya to increase oil royalty until global crude oil prices recovered.

“I have to take cognisance of the fact that we are negotiating during an unfavourable environment when the price of oil is low and the cost of production is competitive,” he had told the state assembly.

He however pledged that the state would resume negotiations for the 20% royalty when the global oil situation improved significantly.

In 2014, the state Barisan Nasional (BN) led by then chief minister, the late Adenan Satem, supported a motion, originally tabled by Sarawak DAP leader Chong Chieng Jen, calling for the oil royalty paid by Petronas to Sarawak to be hiked to 20%.

Last year, Adenan eased up on his demand following the slump in world oil prices, saying the state government would pursue the matter later.

Adenan passed away in January from heart failure and was succeeded by Abang Johari.


Source : FMT Online


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2 Comments »

  1. No need to form new one, because Petronas belong to Sabah and Sarawak…. KL only a passenger

    Comment by tigeryk — June 12, 2017 @ 10:05 AM | Reply

    • Petronas will channel the money to MO1 private account at AmBank?

      Comment by Heng — June 12, 2017 @ 1:32 PM | Reply


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