SARAWAK must not forget the three recommendations of the consultative committee on the Malaysia Agreement 1963 (MA63) in the state government’s ongoing talks on a commercial settlement with Petronas, a state lawmaker said.

Batu Lintang assemblyman See Chee How said getting Putrajaya and the national oil company’s recognition and acceptance of Sarawak’s legal ownership to all hydrocarbon resources in the state remains “our top priority”.

Petronas has finally paid Sarawak RM2.9 billion in owed state sales tax on petroleum products that the oil company initially refused to pay.

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The recommendations by the state legislative assembly’s committee are:

1. The state government and Petronas draw up a five-year localisation plan to give Sarawakians full administration, management and operation of Petronas’ operations in the state; 

2. Sarawak be given 50% asset ownership and 20% net profit from all operations from existing and future assets in the state; and,

3. A declaration of Sarawak’s ownership and sovereign rights, powers, liberties and privileges of exploring, prospecting, exploiting, winning and obtaining petroleum, whether onshore or offshore.

The committee, which advises the state government on MA63 issues, is chaired by the speaker of the legislature, Mohd Asfia Awang Nassar.

See was a member of the committee until he resigned last July to protest the alleged “unauthorised, illegitimate and improper conduct” of the state government in its negotiation with Petronas and the federal government.

The Party Sarawak Bersatu (PSB) assemblyman said the rights should also include the granting of oil and gas mining leases, and to enter into production contracts over the remaining blocks and fields of oil and gas potentials yet to be awarded with production sharing contracts (PSC).

“It must be reiterated the position put forth in the consultative committee that any arrangement must include but is not limited to the three stated terms.

“The demand for the federal government and Petronas to admit and accept Sarawak’s legal ownership to oil and gas and, generally, petroleum resources within Sarawak’s territory should be our top priority in the ensuing negotiations with Petronas.”

With the state now raking in billions of ringgit in petroleum sales tax annually, See reiterated his call for the establishment of a Sarawak wealth fund to manage the revenue.

“We must strengthen our state institutions, including the setting up of a state sovereign wealth fund to oversee, manage and undertake all resource development projects in Sarawak.”

He had called for the fund to come under the purview of the state legislative assembly. – September 18, 2020.