KUCHING, Aug 21 — Sarawak Deputy Chief Minister Tan Sri James Masing said today the state government should not be demanding 20 per cent oil royalty from Petroliam Nasional Berhad (Petronas) for “illegally” extracting oil and gas resources from the state.
He said Sarawak’s oil and gas resources are its assets, and do not belong to Petronas.
“(Therefore) we should tell Petronas in no uncertain terms that either they get out from our land or we do the extraction ourselves of our oil and gas resources based on Production Sharing Contracts,” he said.
“When that happens, a 20 per cent royalty, either based on gross or nett profits, does not apply anymore,” he told Malay Mail.
Masing, who is also Parti Rakyat Sarawak (PRS) president, was asked if he agreed with the idea that Sarawak should work with Sabah to demand a 20 per cent oil royalty based on gross revenue, not profits, from the national oil company.
Sabah Chief Minister Datuk Seri Shafie Apdal had earlier today said his state government would demand a 20 per cent oil royalty from Petronas based on gross production, and not profit.
He said Sabah was the biggest producer among three states in the country — Sarawak and Terengganu being the other two — accounting for some 50 per cent of the country’s oil and gas output.
The Parti Warisan Sabah president also said Petronas would not go bankrupt if it gave out RM6 billion to RM7 billion to the three oil-producing states, noting that in 2013, the federal government received RM32 billion in dividends from Petronas.