Published: Sunday January 20, 2013 MYT 7:17:00 PM
Updated: Sunday January 20, 2013 MYT 7:23:28 PM
Abang Johari: Sarawak to discuss oil royalty review
KUCHING: The Sarawak government may propose a new petroleum royalty formula to the federal government following the latest discovery of rich deposits of crude oil and gas in Miri, said state housing minister Datuk Amar Abang Johari Tun Openg on Sunday.
He said the new formula might not involve the demand for an increase in the current five percent royalty received by Sarawak, but instead, for a certain percentage in share equity in any future discovery of rich deposits of crude oil and gas in the state.
"We are talking about a new approach which we believe the federal government leaders will also recognise because its going to be a win-win situation for both sides," he told reporters after officiating the new SK Rakyat school hall here, Sunday.
He said the state government already had a formula, which involved more benefits to Sarawak, but this could not be revealed at present as further discussions with the federal government was pending.
Elaborating further, Abang Johari said, the step taken by the state government in acquiring its stake in Bintulu Port Holdings Bhd, which is basically a federal port, also might be considered in the new petroleum royalty formula.
He also reminded the people not to be influenced by new polemics that because of the new discovery, therefore, there must be an increase of royalty up to 20 per cent from the current rate paid by federal government.
On Friday, Petronas announced the discovery of oil and gas via the Adong Kecil West-1 well in Block SK333, onshore Sarawak, located about 20 km northeast of Miri city and the first onshore oil and gas discovery made in Malaysia after 24 years. - Bernama