KOTA KINABALU: Sabah’s intention to have greater participation and more revenue sharing in Petronas is to help create more valuable outcomes, says Datuk Armizan Mohd Ali.
The Domestic Trade and Cost of Living Minister said when Sabah met with Petronas on Aug 28, 2021, to discuss the possibility of including Sabah in greater oil and gas participation, it was not to seek Petronas’ ruin.
He said after 50 years, Sabah felt that it was time for Petronas to help create more opportunities for growth that are owned by Sabah via SMJ Energy Sdn Bhd.
"We are not ruining Petronas. We want Petronas to help create more opportunities for growth," he stressed.
Armizan’s response on this matter comes after Chief Minister Datuk Seri Hajiji Noor’s speech during a conference with district officers several days ago, where the latter touched on this issue.
Armizan said in the 2021 meeting with Petronas, he was also present with State Finance Minister Datuk Seri Masidi Manjun where they presented a written proposal to Petronas.
The proposal stated their aspirations and claims for Sabah’s oil and gas industry.
At that time, Petronas welcomed this proposal as it was the first official written document containing suggestions as opposed to hearsays and speeches garnered from other platforms, he said.
The meeting was the basis which led to the signing of the Commercial Collaboration Agreement (CCA) between Sabah and Petronas on Dec 7, 2021, he said.
"Through the CCA, Sabah was able to further their collaborations with increased value and worth.
"The main principle of the CCA is Sabah having greater say, greater participation and greater revenue sharing," Armizan explained.
He said from then on, Sabah did not only speak about royalties and state sales tax rights, but other aspects which were more inclusive.
This also led to better and bigger equity shares and participation while increasing the number of local contractors.
It has benefited over 1,000 companies, he said.
State-owned SMJ Energy Sdn Bhd was tasked to coordinate and monitor every participation strategy and ownership in this industry.
The company comprises upstream, midstream and downstream chains.
"Once again, we deny accusations that the claims for states including Sabah from Petronas in the oil and gas industry were meant to cause ruin," he reiterated.
Among those who made such statements were former Prime Minister Tan Sri Muhyiddin Yassin who, nine months ago, urged states including Sarawak to not 'kill-off' Petronas over oil and gas rights and other claims.
