KOTA KINABALU – Sabah may collect around RM2.45 billion a year from oil royalty and state sales tax (SST), but the quantum would depend on international oil prices, Chief Minister Datuk Seri Hajiji Noor revealed today.
He said the state earned RM10 million in August from additional SST payments by Petronas Petrochemicals for the Sabah Ammonia Urea project in the Sipitang Oil and Gas Industrial Park.
He also confirmed that oil company Hibiscus Petroleum has settled its outstanding sales tax. Sabah is entitled to 5% sales tax from the sale of petroleum products.
“We hope to develop and expand the oil and gas business together with private firms. There must be a harmonious sharing landscape,” he said in a speech to mark the signing of a natural gas supply agreement here today.
The event also saw the exchange of asset sales and purchase between Petronas and Sabah Energy Corporation (SEC).
His speech was read by Sabah Finance Minister II and Local Government and Housing Minister Datuk Seri Masidi Manjun.
Hajiji also confirmed that Universiti Teknologi Petronas (UTP) is planning to set up a branch in Sabah following a suggestion made by the state.
UTP and University College Sabah Foundation recently signed a memorandum of understanding on the matter.
Meanwhile, the agreement signed between SEC and Petronas will make the former the largest domestic natural gas supplier and transporter.
Hajiji said the gas contract will see Petronas handing over to SEC 250 million standard cu ft of natural gas per day.
He said this deal was made possible following the signing of an agreement between SEC and Petronas to further enhance cooperation on activities harnessing fossil fuel in the state.
The natural gas would be channeled to all existing independent power producers in Sabah.
The deal will see SEC supply up to 86% of fuel for the purpose of power generation in Sabah. – The Vibes, October 11, 2022
