Sarawak to push ahead with oil royalty demand

Sarawak will continue to push for an increase in oil royalty, asserted its Chief Minister, Tan Sri Adenan Satem.

refinery workers inside oil and gas installation

“We are of course in negotiation with Petronas, with the view of increasing Sarawak’s take on the oil industry including oil royalty.

“Petronas has been kind enough to allocate at least RM2.1 billion worth of contracts to Sarawak companies, RM50 million in corporate social responsibility (CSR) and established one technical school in Sarawak.

“There is no agreement yet on royalty but we are pursuing the matter,” he told a press conference after the closing ceremony of a four-day retreat for Sarawak’s senior civil servants here yesterday.

The Sarawak Legislative Assembly had unanimously voted in favour of a resolution to request the Federal Government for an increase in oil royalty from five per cent to 20 per cent, on May 6, last year.

The resolution, which was tabled less than 100 days after Adenan took over as chief minister, stirred many Sabahans who had been hoping for more concrete efforts in pursuit of a similar initiative.

Sabah Chief Minister, Datuk Seri Musa Haji Aman, had announced that the state government had made a similar request years earlier and had been looking at other types of benefits from the national oil company such as stakes in its downstream activities.

One of the benefits is a 10 per cent stake in Petronas LNG Train 9 Sdn Bhd in Bintulu, Sarawak, which would generate additional revenue for the state and its people.

Meanwhile, Adenan who was visiting Sabah for the first time as Sarawak Chief Minister, disclosed that he had met Musa and discussed matters of common concern between the two states.

“We discussed on greater collaboration especially in the field of tourism and I have for instance, proposed a package, a Kinabalu – Mulu package for tourists.

“Our senior state civil service officers who are here for their annual retreat also got in touch with their counterparts here and they have exchanged ideas on how to improve the services rendered by the civil service, especially on matters relating to the implementation of government policies, enforcement of law and new approaches in administration,” he said.

When asked on changes he has implemented as chief minister, Adenan said he had made six policy amendments which he described as being acceptable to the people, including on Chinese education, electricity rates, land administration and forest management.“We’ll continue to do that in the years to come and I think we’ve succeeded in motivating the civil service to be more effective.

“I’ve reduced domestic rates for electricity and this April, I’ll make an announcement on electricity rates for commercial and industrial use,” he added.



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