Sabah to earn RM2.45bil from oil royalties, SST payments, says Hajiji

KOTA KINABALU: Sabah is expected to collect about RM2.45bil annually from oil royalties as well as state Sales Tax (SST) payments from the oil and gas sector, says Chief Minister Datuk Seri Hajiji Noor (pic).

He said the earnings projected by the state, however, depended on the international oil prices.

He said that recently, PETRONAS' Petrochemicals (PetChem) was also included for SST payments where the state earned about RM10mil for the month of August through additional payments for its SAMUR operations at the Sipitang Oil and Gas Industrial Park (SOGIP).

He also confirmed that Hibiscus Petroleum has cleared all SST payments that were in arrears after the company had initially refused payment as it was operating from Labuan federal territory.

“We hope to develop and expand the oil and gas business with all oil and gas companies in an atmosphere of harmonious partnership", he said at the signing of the the Natural Gas Supply Agreement and Exchange of Asset Sale and Purchase Agreement and Gas Business between PETRONAS and Sabah Energy Corporation Sdn Bhd (SEC) here Tuesday (Oct 11).

The text of Hajiji's speech was read by state Local Government and Housing Minister cum state Finance Minister II Datuk Seri Masidi Manjun.

Hajiji also confirmed the state government's proposal to establish a branch, Universiti Teknologi PETRONAS (UTP) here.

This is through the signing of the Memorandum of Understanding between UTP and University College Sabah Foundation (UCSF), which will further increase the development of Sabah's human capital and the ability to support the oil and gas sector.

"I also feel very proud of this progress and development. The state government thanks the Federal Government and PETRONAS for showing commitment and always listening to Sabah's demands for the oil and gas industry," he added.