Reject PDA 1974 as it gives back insignificant O&G revenue to Sarawak – Rayong

KUCHING: The Petroleum Development Act 1974 (PDA 1974) should be rejected as the revenue derived from oil and gas resources to the state is considerably insufficient, said Parti Sarawak Bersatu (PSB) Youth chief Dr Johnical Rayong Ngipa.

He pointed out that based on their assessment, the annual sales value of oil and gas resources from Sarawak at normal times could reach at least RM70 billion, almost exceeding 30 per cent of the total annual operating revenue of Petroliam Nasional Berhad (Petronas).

But out of that, he added, the state received about RM3 to RM3.5 billion in annual royalty of five per cent from oil and gas resources and another RM3 billion from the five per cent state sales tax imposed on petroleum products in 2019.

“So, the most Sarawak can collect from its own oil and gas resources is about RM6 to RM7 billion a year. Our benefit is too small. We should reject the Petroleum Development Act 1974 and demand a 25 per cent royalty in total, or take over the development work as owner,” suggested Rayong during a PSB seminar on Malaysia Agreement 1963, PDA 1974 and Native Customary Rights land at a restaurant here yesterday.

By doing so, he said the state would have adequate funds for development in all fields, for the economic well-being of the people and to eradicate poverty among the people, particularly those in the rural areas.

He said the Malaysia Agreement 1963 is an international agreement signed by the United Kingdom, Federation of Malaya, Singapore, Sarawak and Sabah to safeguard the state’s rights in politics, economy, official language, freedom of religious belief and resources on land and territorial sea.

“But after 57 years of rule under the previous Barisan Nasional and now Gabungan Parti Sarawak, many of the rights are still with the federal government, such as oil and gas development, deep sea fishing and education system,” he said.