PAPAR: Gabungan Rakyat Sabah (GRS) Deputy Secretary-General Datuk Armizan Mohd Ali dismissed claims that demands for rights over oil and gas resources by Sabah and Sarawak will see the downfall of Petronas.
He said Sabah has no intention of undermining Petronas but wants the national oil company to help strengthen the State’s participation in the oil and gas industry.
He said the State Government’s aim is for Petronas to assist in nurturing its State-owned energy company, SMJ Energy Sdn Bhd, as the new “golden goose” for Sabah.
“We reject the claim that what is being pursued and aspired by the states, including Sabah, could bring down Petronas, which is seen as the ‘golden goose.’“We are not out to bring down Petronas, which has been seen as the golden goose. After more than 50 years, it is time for Petronas to help Sabah develop its own golden goose in SMJ Energy,” Armizan said.
The Domestic Trade and Cost of Living Minister said this in a press conference held in conjunction with the Sentuhan Kasih Programme, Jualan Rahmah Madani, and Consumer Advocacy event, organised by the Ministry of Domestic Trade and Cost of Living (KPDN), here, Saturday.
Earlier this year, Bersatu President Tan Sri Muhyiddin Yassin warned that Petronas could be “weakened” following negotiations between Sarawak and Putrajaya to settle states’ claims over oil and gas resources within its borders.
The former Prime Minister was also reported saying that demands by states (including Sabah) should be resolved fairly and equitably without “killing the golden goose,” as Petronas remains a major contributor to the nation’s development.
Armizan said Sabah continues the commercial partnership with Petronas that was sealed in 2021 through the initiative of Chief Minister Datuk Seri Hajiji Noor.
He recalled a meeting between the Sabah Government and Petronas leadership on Aug 28, 2021, which marked a turning point in Sabah’s involvement in the industry.
The state delegation, led by Chief Minister Datuk Seri Hajiji Noor and included Armizan who was then senior private secretary and State Finance Minister Datuk Seri Masidi Manjun, submitted a written framework of Sabah’s aspirations and demands to Petronas.
Armizan said the commercial partnership through CCA with Petronas had given Sabah a major boost in the oil and gas sector.
He said this success stemmed from a meeting in 2021 between Hajiji, Finance Minister Datuk Masidi Manjun, himself and Petronas leadership.
“At that time, we submitted in writing Sabah’s aspirations and demands relating to the oil and gas industry to Petronas, and they responded positively because it was the first time they had received a comprehensive framework of recommendations.
“These demands were easier to understand and meet compared with verbal statements or calls made at various platforms by certain parties.
“That meeting laid the groundwork for the Commercial Collaboration Agreement (CCA) signed on Dec 7, 2021, between the State Government and Petronas, that ensures greater say, greater participation and greater revenue sharing for the state,” he said.
Armizan added that the CCA is driven by several permanent committees that meet regularly, with the Chief Minister directly involved at the highest level.
He said SMJ Energy Sdn Bhd, a state-owned company, has been entrusted to coordinate and monitor Sabah’s participation and ownership strategies throughout the oil and gas value chain.
“Today, Sabah is no longer only talking about royalty rights and state sales tax.
“This collaboration with Petronas covers much broader aspects, including equity holdings and increased participation in various oil and gas explorations in the State, in addition to a sharp increase in the involvement of local contractors, now exceeding 1,000 companies,” he said.
