Sabah takes friendly approach when requesting for funds, says CM


KOTA KINABALU: Sabah has never failed to get its fair share as part of the Malaysian federation, Chief Minister Datuk Seri Musa Aman said.

He said this was possible due to state government’s approach of never taking a confrontational approach when making its case with the Federal government.

“We don’t have to argue. It is a matter of asking in a proper way and being civil about it,” Musa said when interjecting during Datuk Dr Jeffery Kitingan (STAR-Bongkor) debate on the motion of thanks for Yang DiPertua Negeri’s policy speech.

Jeffery had asked the Sabah government to review its share of the revenue for petroleum resources tapped from the state’s offshore.

Musa said it would be impossible for Sabah to ask for more than its 5% share of oil royalties as stipulated in the Petroleum Development Agreement it had signed with the Federal government and Petronas in 1974.

“But we have to be smart enough to see where we can increase revenues for the state from the oil and gas sector, this includes us getting substantial stakes in downstream activities,” he said.

Musa said these include a 25% equity in the Sabah Ammonia and Urea Project (Samur) in Sipitang.

He said the state was also given 10% stake at Petronas’ liquefied natural gas (LNG) plant in Bintulu.

He noted that Petronas had also agreed for the state to take over the Kuda Terbang marginal oil field in Sandakan.

“We are thankful that the Prime Minister has instructed Petronas to discuss with us to work out a win win situation for all,” Musa said.

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