KOTA KINABALU – The Sabah government will receive up to 25% shares without premium from liquefied natural gas projects by Petronas’ subsidiary companies, said Chief Minister Datuk Seri Hajiji Mohd Noor.
He said that the transaction will be done via deferred payments from dividends acquired from the projects.
“Through the commercial collaboration agreement (CCA) signed by the Sabah government and Petronas on Tuesday, the state will have a greater revenue sharing, participation and say in the oil and gas industry.
“Sabah will maintain its legal rights under a commercial consultative framework with Petronas,” he said during his winding-up speech at the state assembly today.
He said Petronas will continue its commitment in its cash payment for oil royalty and state sales tax as part of greater revenue sharing in the oil and gas industry.
The Sulaman assemblyman stressed that the Gabungan Rakyat Sabah government that he led will never stop fighting for the state’s rights.
He said a committee led by Datuk Seri Masidi Manjun as state finance minister II will continue negotiating with the federal government for Sabah’s special grant as stated under the federal constitution.
Last Tuesday, Hajiji announced in a statement the incorporation of the state’s wholly owned oil and gas company – SMJ Petroleum Sdn Bhd, as a result of the CCA signed on the same day.
SMJ Petroleum will spearhead Sabah’s commercial venture in the oil and gas industry, and coordinate existing state government-linked companies in ensuring all terms and conditions in the CCA are implemented successfully for the benefit of the state and people.
“The CCA is perhaps the most important document after June 16, 1976, when the oil cash payment (royalty) was agreed upon, signed between Sabah and Petronas.
“It has been the aspiration of our rakyat that Sabah gets more from its oil and gas industry,” he said. – The Vibes, December 9, 2021
