KUCHING: Sarawak’s revenue from state sales tax on petroleum products is expected to grow due to higher oil prices, says Premier Tan Sri Abang Johari Openg.
Despite geopolitical uncertainties, he said the price increase would have a positive impact on Sarawak as an oil-producing state.
“I do not have the figures, but we will continue to work with international companies in oil exploration and production,” he said after a contract signing ceremony between PTTEP Sarawak Oil Ltd and Brooke Holding Sdn Bhd for the provision of engineering, procurement and construction (EPC) of the Sirung production platform yesterday.
He added that Sarawak would continue to explore for potential oil and gas reserves, including offshore areas in western Sarawak.
“These areas have not been explored yet, but new technology can help us to identify reserves in western Sarawak,” he said.
In his speech earlier, Abang Johari said the 5% state sales tax on petroleum products contributed RM2.5bil to RM4.8bil annually to Sarawak’s revenue, depending on global market prices.
He said the 2026 state budget projected RM13bil in revenue, including RM3.5bil from the state sales tax on crude oil, LNG and other petroleum products.
Abang Johari also said that the Sirung project was important amid an uncertain global energy market.
He said PTTEP had announced that the Sirung-Chenda development was targeted for first production in 2028, with a combined production capacity of approximately 15,000 barrels per day.
“Importantly, the project is designed with zero routine flaring and advanced remote-operated offshore operations.
“This is significant because Sarawak’s energy future must not only be productive but also environmentally responsible, efficient and aligned with low-carbon aspirations,” he said.
The Sirung EPC contract, valued at nearly RM1bil, was awarded to Brooke Holding by PTTEP Sarawak Oil on Feb 5 this year.
