Petronas-Sabah oil agreement challenged
KOTA KINABALU September 25, 2012: Six Sabahans, including leaders from Sabah Progressive Party (SAPP) and PAS, have filed a suit against Petronas and the Sabah state government at the High Court here, seeking to declare the 1976 agreement between Petronas and the Sabah state government as null and void.
The group of six who called themselves “Royalty for Sabah”, are Zainal Ajamain, Michael Peter Govind, PAS leaders Lahirul Latigu, Mohd Julpikar Ab Mijan, and SAPP’s Dullie Mari and Joseph Wilfred Lakai.
Zainal was co-founder of the United Borneo Front (UBF) but soon after together with Govind, parted ways with another UBF founder Jeffrey Kitingan.
The writ of summon was filed by their lawyer Marcel Jude at the High Court registry.
Zainal in their joint statement said it was illegal for the federal government to take Sabah’s oil which should belong 100% to the people of Sabah.
“The Malaysia Agreement 1963 is very clear on this,” claimed Zainal who is an economist.
The group contended that the 1976 agreement was in conflict with the Federal Constitution, which successive state governments had failed to address for the last 37 years.
“Recently, both the state government and the opposition have promised that the issue of oil royalty to Sabah is high on their agenda, but actually both have no right to determine the quantum for Sabah.
“[Since] 100% of the oil belongs to the people in Sabah, it should be given back to them and let them decide as to how much should be given to the federal government, whoever it may be,” the group said.
They also claimed that their action was in line with the recent statement by PAS president Hadi Awang in Tuaran that “in Islamic concept of governance, the wealth of a region shall be used to alleviate the problems of the people of the region first before it can be brought out of it”.
According to Zainal, similar suits will be filed by groups in another three oil-producing states of Kelantan, Terengganu and Sarawak.
tiada motif politik kah ni?
BalasPadamSusah mahu ramal sebab kebelakangan ini semuanya pun ada motif masing2.
PadamMustahil tidak ada motif politik. Kalau lihat sendiri pun siapa yang cuba menyaman itu. PAS dan SAPp.
PadamKalau kita lihat sendiri sekarang ini Petronas telah pun membangunkan Sabah ini dengan pelbagai bantuan tambahan lagi sekarang ini pembinaan logi di Kimanis ini akan dapat meningkatkan lagi ekonomi Sabah.
PadamI don't understand why suddenly these businessmen want to come up with this.
Padampasti ada agenda sendiri mereka buat begitu.
Padamkalau ada kepentingan politik, tidak payahlah...
BalasPadamMungkin terlalu banyak duit poket mereka hingga mereka naik mahkamah.
PadamMaasing-masing ada agenda untuk dicapai.
PadamBagus juga usaha dorang ni, cuma harap jangan ada udang disebalik batu la.
BalasPadamKalau untuk kebaikan bersama, I wish u guys all the best.
BalasPadamPenting bah royalti dinaikkan sebab 5% tu macam kurang sesuai utk zaman kini.
BalasPadamPerjanjian royalty harus dikaji semula.
PadamIsu royalti macam jadi bahan politik pula akhir-akhir ini. Mentang2lah dah nak PRU.
BalasPadamIf it's politically motivated then better drop off the suit.
Padamdkat pru semua nak tonjolkan diri.
PadamDivision head Datuk Herbert T Lagadan said the delegates also called for the setting up of (a yearly) trust fund by Petronas during the 10th Malaysia Plan period pending the renegotiation of oil royalty.
BalasPadamWell if that's the case, then I think we should just wait and see.
PadamSabah and Sarawak should have their own panel to look into the oil royalty review for both states, said UPKO president Tan Sri Bernard Dompok .
BalasPadamThe Plantation Industries and Commodities Minister said this when asked to comment on the suggestion to have the two East Malaysian states included in the special committee to review the oil royalty paid to Terengganu and Kelantan by the federal government.
Upko been quite consistent in their view that there should be a look back into the oil royalties and Dompok think the figures can be done immediately to mind his, is 10%.
PadamUPKO Sec Gen Wilfred Madius said the party is all for any move by the State Government to discuss the possibility of increasing the oil royalty with the Federal Government with the other oil producing states. He said UPKO have suggested a 20% increase in oil royalty and that's a good starting point for discussion. He felt it was refreshing that both Sabah and Sarawak were making the move to work out an acceptable formula towards a new formula for oil royalty revenue sharing.
PadamSpecial committee should be set up for the purpose.
PadamSabah MCA Deputy Liaison Chairman Senator Paul Kong personally felt that the 5% oil royalty for Sabah should be reviewed with urgency and increased by at least 20%, because lately more oil and gas reserves have been discovered within Sabah water.Meanwhile, State MCA Wanita Chief Agnes Shim described as a positive move the steps taken by the CM.
BalasPadamHak dan milik harus diperjuangkan.
BalasPadamSabahans should view Petronas’ contribution to the development of the state’s oil and gas sector positively..
BalasPadamthere was no doubt that Petronas was already contributing to the state’s economy especially in terms of creating employment and business opportunities.
BalasPadamall Petronas petrol stations in the state is 100 per cent owned by locals and this does not include opportunities for local contractors to take part in the massive projects undertaken by the national oil corporation in Kimanis and Sipitang..
BalasPadamPetronas’contribution to the state must be viewed in the overall context and not from the point of royalty alone.
BalasPadamPetronas has been forging ahead with upstream and downstream oil and gas projects involving a combined capital investment of RM45 billion.
BalasPadamThe oil corporation was now moving full steam ahead with attention focused on Petronas’ massive investment in Kimanis and Sipitang, which included the Sabah Oil Gas Terminal, the Kimanis Gas Fired Power Plant Ammonia and the Urea Plant Project in Sipitang.
BalasPadamThe overall petronas investments in this state will result in great economic spin-offs for thousands of Sabahans residing in Papar, Kimanis, Beaufort and Sipitang.
BalasPadamchief minister Datuk Seri Musa Aman assured that the state government would extend its full support and assistance to facilitate Petronas-related activities in Sabah.
BalasPadamCiting the Sabah Ammonia-Urea plant project owned by Petronas Chemicals Group Bhd in Sipitang, Musa said Sabah firms were set to be awarded contracts worth some RM600 million in the project.
BalasPadamthis also signifies the earnestness of Petronas in giving Malaysians in Sabah opportunities to be players in the business of oil and gas..