Sabah wants state firms to be involved in Petronas activities

KOTA KINABALU: The Sabah government said the state’s claim on oil and gas revenue from the Federal Government will not consist of only the 20 per cent royalty, but also the state companies’ involvement in Petronas activities.

Chief Minister Datuk Seri Mohd Shafie Apdal said excavation works and downstream operations in the oil and gas industry here were handled by the national oil company, without involving any state company.

During the question-and-answer session in the state legislative assembly sitting, he said it was time that state companies were involved in Petronas operations, especially downstream.

“We do not wish to see only a 20 per cent royalty. Any Petronas activity must take into account Sabah’s best interest. We have companies that can be set in motion,” he said when answering a supplementary question from Datuk Dr Jeffrey Kitingan (STAR-Bingkor) on the 20 per cent royalty claim from the Federal Government.

On another additional questions, Shafie, who is state finance minister, said the state government would stick to the 20 per cent revenue claim.

“This must be realised and we want more state companies to be involved,” he added.

In the original question posed by Datuk Jahid Jahim (PBS-Tamparuli) on the Malaysia Agreement 1963 (MA63), Shafie said the state government was also prioritising electric and gas rights taken by the Federal Government in 1983.

The state government, he said, had taken steps in line with MA63, including the formation of three new state ministries.

“It shows the new state government’s commitment to law, especially relating to native laws, as well as giving the state autonomy and power in deciding about health and educational development.”

He added that a committee, chaired by himself, had been formed in relation to Sabah rights’ claims under MA63.

Any Petronas activity must take into account Sabah’s best interest. DATUK SERI MOHD SHAFIE APDAL Sabah chief minister