theborneopost.com
Petronas asked to bare all records on oil, gas extraction
Churchill Edward, reporters@theborneopost.com
Dato Idris Buang
KUCHING:
Parti Pesaka Bumiputera Bersatu (PBB) information chief Dato Idris
Buang wants a review on all the records of oil and gas mining done in
Sarawak, particularly its total output, in the state’s effort to claim
back what is reasonably Sarawak’s.
In this regard, the Sarawak
government needs to ask for the account of Petroliam Nasional Berhad
(Petronas), said the Muara Tuang assemblyman when reacting to Pakatan
Harapan (PH) federal government reneging on its election manifesto by
giving out only 20 per cent of profit from oil and gas extracted in
Sarawak instead of the 20 per cent royalty on their production.
“We
need to ask for their accounts since the day they started extracting
our resources. We have the right to audit and the right of tracing all
the accounts on production output. This is an equitable right and legal
right as owner of our soil, our land and the resources that are embedded
with it,” he said.
“Let’s see how much they owe us. I believe it would be in several trillions of Malaysian Ringgit,” he said.
“What
Prime Minister Tun Dr Mahathir Mohamad and his PH government are doing
now to Sarawak (giving royalty based on 20 per cent of Petronas’
profit) is not proper and is still not constitutional,” Idris added.
“We
need to review and seek a proper legal declaration of our rights.
Sarawak should levy the rate of royalty by way of output at ex-rigs or
ex-fields, like we do for every unit of water used at the hydrodams like
the ones at Batang Ai and Murum, pay the Sarawak government royalties
at one sen per unit (kwh generated),” he said.
“Petronas should
pay royalty at RM x rate per barrel or gas at RM x per thermal unit.
This is what royalty is supposed to be,” he stressed.
He
emphasised that the PH government and Petronas could not simply tell
Sarawak government what it should be getting without its terms at all.
“As
the absolute owner of our resources we should be the one imposing the
rate of royalty and terms of licences that they must have before doing
the oil and gas businesses on our territory. Over and above all these
(royalty, tax, levies and surcharges) which the state may impose, the
state may own part of the equity of the licensee company which is
totally a different issue if the state decides to participate in
equity.”
He pointed out that royalty and equity participation are
two separate things – royalty comes with the absolute right to impose
terms while equity participation is optional.
“How we want to fix
the rate of royalty may depend – but not necessarily – on how much
equity we want to participate – this is a point for negotiation. We need
to be advised by our own experts – not theirs (PH and Petronas) as to
how much we want to stomach the risks of the business,” Idris asserted.
“What
the PH government and Petronas had done upon us is purely undue duress
or utter subjugation – in that we were cornered to a point where we had
no choice at all but to just accept what was forced down our throats.
Our life in the 60s and 70s then were by and large very poor, with
poverty almost everywhere, schools not in good shape mostly, lacking
modern facilities and so on,” he said.
“We were exposed to
communist terrorism and insurgency and hence the Emergency Ordinances
purportedly made to facilitate the military and navy operations on our
territory (not for Petronas lah). The Petroleum Development Act 1974
came into existence under a big camouflage of emergency and security
exigency,” he pointed out.
Meanwhile, Sarawak Democratic Action
Party (DAP) Youth secretary Dr Kelvin Yii said the concerns and
frustrations felt by the people of Sarawak including himself was
understandable with the recent announcement by Economic Affairs Minister
Datuk Seri Mohamed Azmin Ali that the 20 per cent oil royalty needs to
be based on net profit rather than gross production.
“This was
based on the question that was put up by few members of Parliament
including myself, but in my question, I went further to ask about the
devolution of education and healthcare autonomy to Sarawak which was
also answered by the minister,” Dr Yii said.
He said he still held
strong to the principle stated in DAP manifesto where 20 per cent
royalty based on gross or a value equivalent was promised.
“That
is why we will pursue greater clarification on the matter especially on
the definition of such profit-sharing and most importantly the formula
that is being used. We will crunch out the numbers and be transparent in
the mechanism so that the distribution of our wealth can be fair and
just,” he said.
However, Azmin, when further questioned, said
there would be further discussions with the relevant state governments
whether it will be 20 per cent of net profit or gross value, Dr Yii
said.
Thus, the discussion is ongoing, and Sarawak DAP will keep
pushing for state rights and find a reasonable ground on it, he added.
“In
the context of Sarawak, the ‘New Deal’ that is part of our manifesto
specific for Sarawak clearly mentions about the 20 per cent oil royalty,
50 per cent tax returns to Sarawak, and autonomy in Education and
Healthcare.
“The essence of the extra revenues from the 20 per
cent royalty which is estimated at RM6 billion according to oil prices
last year, and an estimate of RM3.5 billion of 50 per cent taxes
collected in Sarawak, is meant for us to run the two critical
departments which an estimate of running those two departments is about
RM7 to RM8 billion based on budget and current allocations.
“We do
take note of the concerns by the oil and gas industry and I have
personally spoken to some. We were informed that the cost itself ranges
from 60 per cent to 70 per cent which today (yesterday) the minister
(Azmin) has confirmed by saying that ‘From this value per barrel, 70 per
cent from the gross production of oil and gas is actually the cost of
recovery that is borne by Petronas’.
“ Thus, the industry is unable
to give 20 per cent of royalty to remain viable, however in the case of
Sarawak, if the state government decides to take responsibility on the
education and healthcare matters, the federal government has pledged to
‘top up’ to a ‘value equivalent’ of the 20 per cent oil royalty so that
we can run those two critical departments,” Dr Yii said.
“So, the
onus is back to the state government on whether they want to take
responsibility on these two critical departments. The extra revenue from
20 per cent and 50 per cent is not to fill up the pockets of the
state but it is to determine the future of the state through these two
critical departments. Thus as Tun Dr Minister has answered on the
question I put forth, there will be further negotiations with the state
government on the matter especially with regards to the devolution of
powers.
“On top of that, the Special Cabinet Committee for MA63
(Malaysia Agreement 1963) will also look into such matters including the
rights of Sabah and Sarawak to natural resources including oil and gas and reviewing different legislations in view of MA63,” Dr Yii said.
My comments:
It is to secede for good. I hope that all the Sarawakians are united in one heart and mind to fights for our 100% rights of our gas and oil resources as well as all that belongs to Sarawak. We should stop these plunderers to plunder and exploit us at will anymore.
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