New oil fields: Sabah must re-visit old ‘deal’

With new oil fields opening and bigger productions, it is vital that the Sabah government push for better returns from Putrajaya. 

Queville To, FMT

The Musa Aman administration must fight for a  higher royalty, especially now that new oil fields are being opened “with bigger productions and more revenue”.

Luyang assemblyman Dr Hiew King Cheu maintained the Sabah government cannot be happy and smug with the existing five percent it receives in oil royalty.

“We deserve to have more especially with new oil fields are being opened up with bigger production and more revenue,” he said.

He cited the Kikeh oil field, noting that it is producing almost 50% of the total oil production in the Sabah oil fields put together.

“What happens when other new oil fields open up and new reserves are found in Sabah?

“The amount of money will be huge and why not we secure higher percentage on the sharing now?” he asked.

He said the state government should not be content with the meager 5% oil royalty and the money from Kuala Lumpur.

“Sabah deserves to get a bigger share. Just imaging when we have 20% on the oil royalty, just for 2012, we should be getting RM3,765.00 million.

“There is an extra of RM2,823.75 million,” he pointed out.

Hiew thus questioned the logic for not fighting for a higher oil royalty especially in the instances of new oil fields.

“The oil resources belong to the people of Sabah, not the state or federal cabinet,” he stresesd.

Look at bigger picture

He maintained that it is the duty of the state cabinet to set up the special committee to study the oil royalty issue and to forward their recommendations to the federal cabinet for decision on an increment in the oil royalty to Sabah.

He said the State government should not reject such a call just because it came from an opposition elected representative like him, but must look at the bigger picture, in the best interest of the state and its people.

The state cabinet has the duty to fulfill the wish of the people, and it is their job to get the best for the Sabahans.

For this, the ruling parties and the opposition parties should stand together to achieve the goal, because we all represent the people of Sabah.