THE SABAH STATE GOVERNMENT DOES NOT INTEND TO MAKE ANY RECOMMENDATION TO THE FEDERAL GOVERNMENT TO REVIEW THE EXISTING OIL ROYALTY.

No review of oil royalty intended

23rd April, 2010

KOTA KINABALU: Minister in the Chief Minister Department Datuk Nasir Sakaran said the state government does not intend to make any recommendation to the federal government to review the existing oil royalty.

He said what is most important is the federal government’s commitment to the development of Sabah, which was reflected in the amount of development funds they gave to Sabah.

Besides, the cooperation between the state government and Petronas remains strong where the national oil company is determined to develop the oil and gas industry in Sabah, including downstream gas activities and training for the locals, he said in his winding up speech at the State Assembly sitting yesterday.

He was replying to queries raised by assemblymen comprising Datuk Louis Rampas (Kiulu), Justin Guka (Bingkor) and Melanie Chia (Luyang).

“The change of policy made by Petronas towards increasing more domestic investment is expected to give great benefit for Sabah in future,” he said.

About the former Mamut copper mine, which was raised by Kundasang assemblyman Dr Joachim Gunsalam, he said the federal government had allocated RM8,520,000 to rehabilitate the mine under the Ninth Malaysia Plan. The project started in 2007.

Nasir also informed Sri Tanjung assemblyman Jimmy Wong that Landau area is included under the Ulu Kalumpang forest reserve (first class) and it has a size of 54,886 hectares.

“This forest reserve was gazetted to protect the water resources for Tawau and Kunak since 1992 and the logging activity ceased operation since 1986,” he said.

On land issue, he said the Native Customary Land and Legal Matter Lab was established in Sabah and Sarawak to look into the native land problems in both states.

Among the approaches that have been agreed by the state government and the committee responsible for the labs was the plan to introduce communal title with the aim to uplift the living standard of rural residents.

The state government through the Land and Survey Department is in the process to implement a programme called ‘Fast Track Planned Land Alienation’ for the issuance of communal title for the locals, he said.

Regarding the 2,000 acres of land raised by Bingkor assemblyman Justin Guka, he said the application has been frozen and so far no approval was given to applicants whether from individual or company except for the 300 acres land in Gua Laing, which will be gazetted for recreational area.

He also informed Luyang assemblywoman Melanie Chia that the Sabah Sarawak Gas Pipeline project undertaken by Petronas cuts across lands that have titles and forest reserve areas.

Nasir said the state government through the Land and Survey Department has acquired the lands with the Sabah Economic Development Corporation (SEDCO) as the land owner while Petronas was the third party in the implementation of the pipeline project from Kimanis to the border of Sabah-Sarawak.