PAPAR: Gabungan Rakyat Sabah (GRS) has rejected claims that demands from states for a greater share of oil and gas revenue could “ruin” Petronas, saying the state instead wants to create its own energy “golden goose.”
Datuk Armizan Mohd Ali, the GRS deputy secretary-general, said the Sabah government would continue to strengthen its cooperation with Petronas on the principle that Sabah should have “a greater say, greater participation, and greater revenue sharing.”
“We have no intention of destroying Petronas. Our goal is that after more than 50 years, it is time for Petronas to help create a ‘new golden goose’ owned by Sabah itself, namely SMJ Energy Sdn Bhd,” he said.
Armizan said Sabah has been pushing for greater participation in the oil and gas industry since August 2021 when Chief Minister Datuk Seri Hajiji Noor met with Petronas’ leadership.
He added that he attended the meeting along with state finance minister and SMJ Energy chairman Datuk Seri Masidi Manjun.
“We submitted Sabah’s aspirations and demands regarding the oil and gas industry to Petronas in writing,” he said.
“Petronas welcomed this because it was the first time they had received a comprehensive framework of recommendations and proposals from a state, unlike the demands made by certain parties.”
Armizan said the meeting became the basis for the Commercial Collaboration Agreement (CCA) signed between the Sabah government and Petronas on 7 December 2021.
“Through the CCA, the Sabah government will continue a more valuable and meaningful collaboration with Petronas,” he said.
“Since then, Sabah has not only been talking about royalties and state sales tax but also broader aspects and issues.”
Armizan said Sabah’s close ties with Petronas were now being realised through increased equity in various oil and gas explorations in the state and the participation of over 1,000 Sabah contractor companies in the industry.
“Sabah’s ownership in the state’s oil and gas industry is now more meaningful across the entire upstream, midstream, and downstream value chain,” he said.
© New Straits Times Press (M) Bhd
