KOTA KINABALU, April 13 — Sabah actively negotiates with state oil firm Petronas to maximise petroleum income beyond just oil royalty payment, Chief Minister Datuk Seri Musa Aman told the state assembly today,
Musa said that the state also benefited from active participation in the industry and other equities it holds in Petronas, including a new unexplored oil field off the east coast of Sabah.
“Sabah is in constant discussion with Petronas on how to get more, not only from its oil royalty but also in exploring other forms of profit, including the taking over of a marginal oil field in Sandakan, which has been approved in principle (by Petronas),” he said.
Other equities it benefits from includes the LNG9 Bintulu plant, downstream processing and other onshore exploration.
“We also get a 25 per cent share of onshore operations equity which is very high,” he said.
Musa said this in response to a supplementary question from Tamparuli state assemblyman Datuk Wilfred Bumburing who questioned whether the drop in oil prices will result in a surplus or deficit in the state budget.
Declining to make a forecast, Musa said that it depends on whether global prices will climb back up but that the state has prepared itself with a prudent budget.
Sabah receives a five per cent royalty payout from the national petroleum company, which has been a point of contention for many natives, including opposition parties who have been fighting for the sum to be increased to 20 per cent.
Earlier, Musa said the drop in global oil prices from US$100 (RM360) per barrel last July to US$57 currently meant royalty payments from Petronas were set to fall from RM1.1.5 billion to RM788 million.
