KOTA KINABALU, Aug 14 2018 : The Sabah government expects no less than RM5 billion annually if petroleum royalty are increased from five per cent to 20 per cent.
However, Chief Minister Datuk Seri Mohd Shafie Apdal said Petronas had informed the state government that cash payments from oil and gas revenues would depend on various factors.
“Among the factors which determine the amount of royalty include the mechanism and basis for the increments in cash payments which need to be discussed and decided by the relevant parties, estimates of oil and gas output, advanced plans for the development of oil and gas fields and global crude oil prices,” he said.
Mohd Shafie who is also the State Finance Minister said this in reply to a question from Datuk Dr Joachim Gunsalam (PBS-Kundasang) at the Sabah State Assembly here today.
He said the state government’s proposal to increase the petroleum royalty to 20 per cent was still at the discussion stage with the federal government, adding that based on the calculation of a five per cent royalty, Sabah should receive RM1.31 billion this year. – Bernama