Sabah still in talks with Petronas for larger share of oil revenue, Ongkili

Friday, 01 Oct 2021

KOTA KINABALU: A commercial agreement between Petronas and Sabah for a greater share in oil and gas revenues is still ongoing, Minister in the Prime Minister Department Datuk Seri Dr Maximus Ongkili said.

Ongkili, who was minister in charge of Sabah and Sarawak affairs, said that while the issue had been settled for Sarawak, Sabah, who had also adopted a similar formula to their neighbour (Sarawak), has yet to be paid.

This was due to the volume Petronas collected from each state was different, he added.

Under the Petronas settlement agreement with Sarawak signed in December last year, Sarawak would be offered a greater share of revenues from oil and gas.

Other measures included allowing the state owned oil company to be involved in oil and gas ventures and investments.

Ongkili said that the Covid-19 pandemic lockdowns and curtailment of movement had delayed some of the meetings but Sabah should be able to now push for it to be completed.

Ongkili said this in response to a question on why the Federal-state discussions on the four outstanding matters under the Malaysia Agreement 1963 had been put on hold.

He said it was halted to make way for a commercial solution pertaining to the on-going negotiations on oil and gas between the Federal, Sabah and Sarawak governments.

Ongkili said that once petroleum issues were settled, discussions would move on to the three related laws being disputed between the Federal government and the two Borneo states.

Ongkili said that the Special Council for MA63 would be briefed on the outcome of the discussions.

Source : https://www.thestar.com.my/news/nation/2021/10/01/sabah-still-in-talks-with-petronas-for-larger-share-of-oil-revenue-ongkili