KUCHING, July 21 — Chief Minister Datuk Patinggi Abang Johari Tun Openg said the provision of royalty and profits based on oil production are two different things.
Hence, he said the government of Sarawak wished to seek further explanation from the federal government on the matter.
“We will get an explanation because royalty and profits are not the same,” he told reporters briefly after chairing the 51st Sarawak United National Youth Organisation (Saberkas) here today.
Abang Johari was asked to comment on the statement of Prime Minister Tun Dr Mahathir Mohamad on the 20 per cent royalty to petroleum producing states at the Dewan Rakyat sitting recently.
Yesterday Dr Mahathir clarified that the 20 per cent royalty would be made based on the total profits acquired by the petroleum producing states. — Bernama.
Hence, he said the government of Sarawak wished to seek further explanation from the federal government on the matter.
“We will get an explanation because royalty and profits are not the same,” he told reporters briefly after chairing the 51st Sarawak United National Youth Organisation (Saberkas) here today.
Abang Johari was asked to comment on the statement of Prime Minister Tun Dr Mahathir Mohamad on the 20 per cent royalty to petroleum producing states at the Dewan Rakyat sitting recently.
Yesterday Dr Mahathir clarified that the 20 per cent royalty would be made based on the total profits acquired by the petroleum producing states. — Bernama.
In very simple English explanation, it's like gross and net profits, wakakaka.
Toldja. That Wiley Ole Fox will fool anyone if you are not careful. But when you think about it what TDM offers makes sense.
ReplyDeleteSarawak wants 20% of the O&G extracted from its territory, but want Sabahans and Peninsularians to pay for all costs, which includes exploration, capital investments, extraction, storage, salaries, production sharing costs with oil majors etc, which are considerable. If for example the price of crude crashes to below cost (as it nearly happened a few years ago), it makes no sense to still pay 20% of revenue.
Revenue is also shared with oil majors like Shell and Exxon, so they have to pay royalty to Sarawak too?
Wakakka..fine print.
ReplyDelete"Royalty" may be gross earnings some times, may be nett earnings... depends on contract.
After supporting BN as a fixed deposit state for the past 55 years where practically nothing was given by the Federal Govt., under the PH Govt, where 20% of the profits is then considered to be given, what does it shows?
ReplyDeleteWhy show the disagreement publicly when negotiations have not even started and the necessary amendments to the laws and agreements have not even been done yet?
I think Sarawakians and Sabahans as well as those voters in other oil producing states knows now how their own state politicians have been so hypocritical when it comes to their own political interests and survival.
sometimes it is fine to be a munafik or snake.
ReplyDeleteLike cheebye motherfucker kaytee?
DeleteI did not fCk your mother
Delete