By Datuk Dr Jeffrey Kitingan
“The Sabah government should take this golden opportunity to demand and sign a new and better oil agreement with Petronas and the federal government” said Datuk Dr. Jeffrey Kitingan, Chairman of STAR Sabah in response to the statement given by the Chief Minister that the State’s 5% petroleum royalty review issue is open for amicable discussions with the federal government.
“If the Chief Minister is truly a Sabahan at heart, this is the most opportune time to not only seek a review but to demand and negotiate a new deal for Sabah’s oil and gas resources for the benefit of Sabah and its future. It cannot be denied that any increase in the oil revenue including the offer of 20% by Pakatan Rakyat is definitely for the benefit of Sabah and Sabahans” added Dr. Jeffrey.
The old oil agreement is nearly 4 decades old and a new oil deal is certainly needed for the future of Sabah. The so-called review will also test the sincerity of the federal government and the Sabah leaders as well as the extent of the federal-state relationship.
The battle for Putrajaya to be decided in Sabah and Sarawak
In addition, it is important to realize that the seat of government in Putrajaya is now likely to be decided by Sabah and Sarawak. Therefore, the Sabah and Sarawak leaders must leverage on their role as kingmakers.
Sabah and Sarawak leaders must ensure that the rights and interests of Sabah and Sarawak come first. And, if the federal government does not agree to increase the share of oil revenue for Sabah and Sarawak, the Sabah and Sarawak leaders, as kingmakers, should just change the federal government.
The State government should also adopt a holistic approach to the old oil agreement in seeking a new deal.
Oil Agreement Unconstitutional?
Many are of the opinion that the existing oil agreement is unconstitutional and invalid because it is not only unfair but infringes on a fundamental state rights. They also question the authority and the manner of the then Chief Minister in signing away the oil rights without approval from the State Legislative Assembly. The terms of the agreement are not only loop-sided but grossly unfair to the oil-producing states.
5% Not Oil Royalties
The Chief Minister also need to better understand the existing oil agreement.
Firstly, the current 5% is a cash payment payable by Petronas under Section 4 of the Petroleum Development Act, 1974 in return for the ownership and the rights, powers, liberties and privileges of the oil and gas resources vested to Petronas by the State and is not royalty at all. Furthermore, Section 4 provides that the cash payment is to be agreed between the parties, and not imposed upon.
There was unlikely to have been any negotiations in 1976 for the amount of the cash payment. If it had been properly negotiated, it would not have ended up at a mere 5% for transfer of ownership of the oil and gas resources to Petronas. In fact, the then Chief Minster had recently stated that the State was forced to accept the 5% cash payment.
Secondly, very few people know that in fact under Clause 4 of the 1976 agreement that was signed 8 days after the Double Six Tragedy, the State government was also asked to agree to waive or to reject Sabah’s rights to royalties on the oil and gas resources.
Therefore, in the new deal, the Chief Minister should seek the restoration of Sabah’s rights to impose oil royalties which are provided under the State List of the Federal Constitution and Section 24 of the Land Ordinance, Sabah Cap. 68.
How Much Potential Oil Royalties Did Sabah Lose?
Thirdly, as explained, the current 5% oil revenue receivable by the State is cash payment under Section 4 of the Petroleum Development Act and nothing to do with royalties.
In a video recording done in 1975, Tengku Razaleigh Hamzah, who was then Minister of Finance and President of Petronas explained that royalties entitlements of the states was 12% for up to 3 miles from the shoreline, and with the federal government getting 10% for up to 10 miles and 8% to the federal government for up to the international boundary.
Assuming that this was implemented, Sabah would have gotten or received a total of at least 17% in oil revenue with 12% in royalties and 5% cash payment.
It is STAR’s view that Sabah should receive at least 30% in royalties because Sabah’s boundary is the same as the international boundary as Sabah gained independence on 31 August 1963 thereby establishing its international boundary as a nation. This means Malaysia’s international boundary coincide with Sabab’s international boundary.
STAR’s Views
As part of STAR Sabah’s causes and aspirations for Sabah, STAR is seeking an increase of the oil revenue to 50% nett revenue excluding royalties which are payable even if the ownership is transferred to Petronas. It is set out in STAR’s Petroleum Masterplan which is comprehensive and covers a wide range of policies for Sabah’s oil and gas beneficial to Sabah and Sabahans.
It is also STAR’s view that Sabah’s or Sarawak’s oil rights CANNOT be transferred as it belongs to the States but can only be leased or assigned for a specific period.
An increase from 5% to 50% will bring in an additional amount of at least about RM7.0 billion a year for Sabah. It will definitely help Sabahans and alleviate if not eliminate poverty totally in Sabah.
The additional RM7.0 billion will be proof that the federal and state governments are sincere in resolving the oil issue and talk of asking for a review is not just mere election gimmick to hoodwink the voters in Sabah in the coming general elections.
Sabah BN should touch their heart and impose their political will and secure a new oil deal for the future and benefit of Sabahans and not pay mere lip service and play the issue up as an election gimmick . And if the federal government and Petronas does not agree to a new deal for Sabah and Sarawak, the Sabah and Sarawak should stand united and change the federal government for the sake of Sabahans and Sarawakians alike.
INI KALI LAH!
Dr. Jeffrey Kitingan is Chairman of STAR Sabah
A true Sabahan is one who has been administering the state of Sabah for the last 10 years as chief minister and there is no necessity to prove it anymore.The people support Musa Aman and they know that he is the true son of Sabah.JK is still way behind in trying to proof himself as a true Sabahan.A little bit of talk here and there does not make JK a true Sabahan and therefore it is embarassing to himself in asking the CM to prove himself.Musa has given sacrifices and great deeds to the state and country and bestowed with high honours for what he had done.Who is JK to question that?
ReplyDeleteDon't forget, before that musa Aman saying 5% enough for sabah. Musa Aman saying like are flip flop. Kejap ini kejap itu.
DeleteMusa Aman has no credibility in running the state which is now the poorest in the country today.
Deletemusa aman go 360 degree counter clockwise in his move...there is no sincerity in his speech, I am very sure with 100% accuracy that this is just another political gimmick made by musa..
Delete-true sabahan never songlap 100 million US dollar duit rakyat..
-by the way let us give a chance for him to proof if he is genuinely true sabahan heart, JANJI DITEPATI.. jangan cakap kosong untuk faedah politik peribadi- buat masa ini saya percaya BOHONG DITEPATI...
INI KALI LAH- GO FOR 50%
Betul.Datuk Musa telah menyuarakan masalah ini dan akan dikaji semula untuk dibawa berbincang dengan pihak atasan.
DeleteThis is a good opportunity for Datuk Musa Aman and Datuk Taib Mahmud to discuss the oil royalties issue with the Federal Government, we shall wait and see how it goes next.
DeleteA true Sabahan is one who has been administering the state of Sabah for the last 10 years as chief minister and there is no necessity to prove it anymore.The people support Musa Aman and they know that he is the true son of Sabah.JK is still way behind in trying to proof himself as a true Sabahan.A little bit of talk here and there does not make JK a true Sabahan and therefore it is embarassing to himself in asking the CM to prove himself.Musa has given sacrifices and great deeds to the state and country and bestowed with high honours for what he had done.Who is JK to question that?
ReplyDeletesiapakah Musa bin Aman jika tanpa sokongan rakyat? menjadi CM adalah tanggungjawab beliau dan jika JK adalah seorang CM juga perlu memikul tanggungjawab yang sama.
DeleteSesiapa yang menjadi CM akan berkhidmat dengan penuh tanggungjawab dan dedikasi terutama kepada rakyat dan kemajuan prasarana negeri. Jadi tidak timbul siapa yang lebih banyak menabur jasa sehingga mendabik dada. Memadailah dengan bayaran gaji yang setimpal sebagai seorang ketua menteri.
Throughout the years in politics, Jeffrey kitingan has only prove to the people that he is capable of one thing- party hopping. The title King of Frogs is completely befitting of him.
Deletedan Musa Aman pula ada rekod untuk rakyat termiskin di bawah kerajaan BN/umno macam sekarang ini dan beliau juga adalah Ketua Menteri Sabah yang memimpin Sabah ke arah kemiskinan iaitu negeri yang termiskin sekali di Malaysia......
Deleteaduuuuuuh....!!!!!!
Tukaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaarrr............!!!!!!!!!!!!!
Anak Petagas ni is a good balls polisher.... salute + respect
ReplyDeleteYou guys are just jealous of him because you have no more point to fight back his statements.
DeleteHis track record in Wikisabah speaks for itself...very good BN balls polisher.
DeleteThe British administered Sabah (then called North Borneo) until 1963. Were they true to the soil? Need to note though that they did leave a legacy , good English. Perhaps you are one such still existing lucky beneficiary, Anak Petagas? While the rest of us not in the train are wrestling to attain a level . I am presuming here. Flaunt it anyways. Let some leftovers trickle down.
ReplyDeleteBack to one being a true Sabahan, ONE can turn out to be a LICKER . Having a Popsicle is yum.
Let STAR black gold agenda be known. You are one impetus
JK bukan STAR dan STAR bukan JK, jadi apa salahnya menyokong STAR dan JK, tapi yang penting adalah perubahan ke arah kerajaan baru supaya BN/umNO tidak terus besar kepala dan mendabik dada...
DeleteStar said they will contest 32 seats, what is left for SAPP and PKR?
Delete28 seats ? Is that ok ?
DeleteOKEY lah tuu.....
DeleteMana lebih penting dan utama, kesetian pada ketua menteri atau kesetian pada negeri sabah. Petroleum, 20 perkara, NCR, bukan JK punya dan bukan CM punya, tetapi rakyat sabah punya. Siapa yang setia pada negeri sabah musa aman atau jefry kitingan?
ReplyDeleteJeffrey Kitingan is the bearer of Sabah Rights. He started the ball rolling. It is now picking up speed. It has definitely pulled Musa to play. From the look of it from the gallery. Will Musa make a goal?
ReplyDeleteWahai warga Sabah dan Sarawak. Tahukah kamu dalam satu tahun berapa hasil minyak dipungut oleh Petronas daripada minyak dan gas Sabah dan Sarawak?
ReplyDeleteSAYA PERCAYA 95% HASIL YANG BAIK DI ANGKUT DENGAN RAKUS OLEH PETRONAS DAN MENINGGALKAN KARBON+PLUMBUM SETINGGI 5% UNTUK SABAH..
DeletePatut ada laporan umum ditunjukkan kepada rakyat terutamanya di Sabah tentang berapa keuntungan yang telah Petronas dapat.
DeleteOh What a very very very saaaaaad story......All this we have been FOOOOOOOOOOOOOOOOled my friends so come GE13 stat your stand VOTE FOR BORNEO.........
ReplyDeleteCM Sarawak tabled 2012 State Budget for Sarawak shows income of RM1.51 billion for Sarawak's oil and gas. This means Petronas will get RM28.69 billion from Sarawak's oil and gas for 2012.
ReplyDeleteCM Sabah tabled 2012 State Budget for Sabah shows income of RM0.775 billion for Sabah's oil and gas. This means Petronas will get RM15.5 billion from Sabah's oil and gas.
Vote for Barisan Nasional.
Keep Sabah, Sarawak as fixed deposits.
Sabah remain as the poorest State.
Janji Ditepati.
1 Malaysia .... untuk UMNO sahaja.
Rakyat didahulukan .... selepas kroni-kroni Umno.
Pencapaian diutamakan .... selepas wang rasuah diambilkan.
Datuk Musa Aman said he will be discussing the oil royalties issue with the Prime Minister, hopefully the 5% royalty will be reviewed and raised. We shall wait and see.
ReplyDeleteIs there any probability for oil royalty to be increased?
DeleteAfter BN wins it will be maintain again at 5% with the excuse royalties given is currently sufficient + promises of more allocation for development later like filling road potholes, provide clean water and clearing blocked drains.
DeleteThe priority now is Malaya's mega projects worth billions like Iskandar Nusajaya Education Hub development, refining Sabah/Sarawak's oil in Johor, expanding MRT/LRT rail projects, Tun Razak Exchange, Penang 2nd bridge, KLIA 2 etc.
Kalau Musa sudah cakap macam ni, maknanya ada harapan lah tu kena naik.
DeleteHarap Musa dapat mengutarakan hal ini pada PM secepatnya dan membawakan berita baik buat Sabahan:)
Deleteharap musa aman akan berjaya..
DeleteMaksudnya pemimpin serawak telah lama mempunyai kesedaran berkenaan dengan tuntutan kenaikan royalti minyak,bukan macam pemimpin BN sabah mahu ikut-ikut saja,sepetutnya yang baik itu disokong walau pun idea itu dari pemimpin pembangkang disabah,saya rasa serawak akan dapat duluan kenaikan royalti sebab mereka tidak takut sebab mereka bukan di parti UMNO,macam penubuhan IPTA,sabah duluan minta tapi serawak duluan dapat sebab mereka di hormati sebab pemimpin mereka berani meminta bukan macam BN sabah macam kena cucuk hidung
ReplyDeleteRasanya dari dulu lagi pun isu royalti dah kena cakap cuma sekarang ni ia jadi hangat sebab sudah sampai masanya ia dinaikkan.
ReplyDeleteSelepas 36 tahun baru mahu bincang kenaikan royalti minyak?
Deleteini perkembangan yang baik dan sama2 lah kita berdoa yang terbaik.
DeleteMampukah si Jeffry ni menyakinkan rakyat utk sokong dia. Macam saya pula nervous menantikan PRU13.
ReplyDeleteSPR cakap Star tidak layak untuk tanding kerusi DUN...
DeleteSiapa yang cukup umur tu mengundilah kamurang dan ingatlah undilah yang terbaik.
ReplyDeletemasing2 pasti ada pilihan sendiri..pilihlah yang terbaik.
DeleteJIKA PR + STAR DAPAT BERKERJASAMA DENGAN BAIK PEMBANGKANG SABAH AKAN MELONJAK MENJADI KUASA BESAR DI SABAH....BERDOALAH BN SUPAYA MEREKA TIDAK DAPAT MENCAPAI PERSETUJUAN ITU...TAPI JIKA HARI ITU TIBA SAAT MEREKA MENGUMUMKAN PERSEFAHAMAN BERSEDIALAH UNTUK MENERIMA KESAN PALING BURUK...
ReplyDelete1)Datuk Seri Musa Aman di persidangan Dewan Undangan Negeri baru-baru ini, yang menyatakan bahawa isu royalti minyak sukar dibangkitkan kerana perjanjian tahun 1976 tidak menyediakan peruntukan bagi semakan semula terhadap kadar royalti lima peratus yang dipersetujui.
ReplyDelete2)Puteri Umno Sabah sokong naikkan royalti minyak, Musliati yang ditemui pada majlis rumah terbuka sempena Aidilfitri di kediamannya, ditanya mengenai kenyataan Ketua Menteri Sabah Datuk Seri Musa Aman semalam, yang dilapor berkata kerajaan negeri terbuka mengadakan perbincangan dengan kerajaan pusat berhubung isu itu.
Nota:cuba kita amati ulasan pertama dari ketua menteri Sabah dalam persidangan dewan undangan negeri,ulasan ketua menteri dalam persidangan ADUN tempoh hari bermaksud apa-apa yang diberi oleh petronas harus diterima saja inda boleh dikaji lahkan tapi cuba pula amati bila suara pemimpin dari serawak yang ingin mengkaji royalti yang mereka terima dikaji maka si CM pun tumpang semangkok lah dan bertempik sorak lah macai-macai UMNO termasuk ketua putri UMNO sabah,ini bermaksud bahawa pemimpin UMNO sabah tidak boleh di harap untuk memimpin negeri kita hanya menjadi pak anggok dan tukang Yes saja inda ada idea...tukarrrrrrrrrrrrrr lah
Harap semuanya berjalan dengan lancar dan kita akan mendapat lebih.
ReplyDeleteya, kita harap semuanya akan lancar dan ada hasil yang baik nanti.
DeleteSudah tiba masanya untuk kita menamatkan isu ini
ReplyDeleteSudah sekian lama rakyat menunggu hal ini untuk diperbincangkan. Nampaknya ada sesuatu yang akan berlaku dan harap ianya adalah sesuautu yang positif.
ReplyDeletebila ianya benar2 berlaku, tetap juga ada pihak yang tidak puas hati..
Deleteini merupakan satu perkembangan yang positif dan baik.
ReplyDeleteyup.. satu perkembangan positif yang menunjukkan kerajaan sedia mendengar keluhan, desakan dan permintaan rakyat..
Deletesemoga hasilnya nanti akan menggemirakan kita semua.
ReplyDeletepembangkang pandai cakap pasal royalti tapi tidak pandai jelaskan bagaimana mereka mampu menaikkan royalti minyak ke paras tertentu..
ReplyDelete"STAR is seeking an increase of the oil revenue to 50% nett revenue excluding royalties which are payable even if the ownership is transferred to Petronas."
ReplyDeleteboleh Jeffrey jelaskan bagaimana dia mahu naikkan royalti minyak kepada 50% dengan mengambil kira kos carigali dan subsidi petronas?? sampai sekarang dia hanya bagi percentage saja tapi tidak ada penjelasan secara detail tentang BAGAIMANA?..
patut la ramai orang cakap pembangkang gila kuasa, buat janji secara membuta tuli.. last2 semua janji tidak dapat dilaksanakan macam janji2 Pakatan di 4 buah negeri..
ReplyDeletemungkin pembangkang ingat, Petronas guna dulang untuk dapatkan petroleum.. sebab itu ikut suka hati saja letak percentage.. yang satu janji 20%, yang dia pula janji 50%..
ReplyDeletesemakin luarbiasa janji2 yang diumumkan pembangkang, semakin meluat dan menyampah saya tengok.. harap2 la selepas PRU ini pembangkang akan terus membangkang.. aman juga Sabah dari genggaman pemimpin2 tamaha dan suka lompat sana sini..
ReplyDeletePembangkang akan berusaha memberi janji2 yang manis untuk didengari untuk rakyat
DeletePembangkang tidak akan berhenti mengkritik usaha kerajaan untuk rakyat.
ReplyDelete