Sabah fights tooth and nail for oil and gas rights, says Masidi

 By Olivia Miwil - March 21, 2022 @ 3:47pm

Sabah Chief Minister Datuk Seri Hajiji Noor (right) in a discussion with State Finance Minister II cum Local Government and Housing Minister Datuk Seri Masidi Manjun before the start of today's state assembly sitting. -Pic courtesy of Sabah Chief Minister's office

KOTA KINABALU: Sabah Finance Minister II Datuk Seri Masidi Manjun said the state government has fought tooth and nail for the state's oil and gas rights.

"About the gas… I am not a smart person and am just a villager… Dusun people from Ranau.

"But during the entire negotiation session, I held my head high and defended Sabah and got what it deserves.

"I walked out from the meeting when I was dissatisfied, and punched the table," he said during the question-and-answer session at the state assembly sitting here.

He was responding to additional questions from Datuk Seri Mohd Shafie Apdal (Warisan-Senallang) on the state government's efforts in ensuring oil and gas rights are being returned to Sabah through negotiations with Petroliam Nasional Bhd (Petronas)

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Masidi also said that Petronas has agreed to set up a floating facility in Sipitang to process gas.

He added that the national oil gas company was in the planning stages and expected to execute it within two years.

However, he said that while it is time to get back Sabahan's rights on oil and gas, it is essential to have expertise, manpower and really know what the state is doing.

Earlier, Datuk Mohamaddin Ketapi (PPBM- Segama) had asked for details and benefits of a Commercial Agreement between Sabah and Petronas signed on Dec 7.

Masidi said the Commercial Collaboration Agreement (CCA) would ensure Sabah has a share in revenue and more participation in oil and gas commercially while retaining the state's legislation.

"Sabah is also given opportunities in the oil and gas industry through upstream , liquefied natural gas and downstream activities.

"This scenario shows that locally owned companies involved in the oil and gas industry are given the opportunity to participate in all three activities.

"Apart from that, Petronas is committed to oil royalty and sales tax for greater revenue sharing.

"The agreement will also give Sabah rights in the oil and gas industry for easier commercial partnership with the state's subsidiary companies."