Time to allow Sabah to manage its own oil and gas

KOTA KINABALU: De facto law minister Liew Vui Keong believes in the Petroleum Development Act (PDA) 1974 that created Petronas and allowed it to be exploited.

In a speech at a "Dinner with the Minister", Liew said the time had come for the Sabah Government to take the proper steps to manage its own oil and gas resources more effectively.

"Amending the Act would give the Sabah Government more advantages in managing its own oil and gas.

"This is in line with the intention of the Pakatan Harapan government and warrior to give equal rights to Sabah, as announced by Prime Minister Dr Mahathir Mohamad last Malaysia Day," he said.

The Sabah assembly yesterday, which has been refined in Sabah.

The Land Ordinance (Cap 68) is amended in Section 4, in the definition of land to include the bed of any river, stream, lake or water course, with the area of ​​the main shelf and its subsoil, which lies beneath the high seas, contiguous to the territorial waters of Sabah, as stated in the North Borneo (Order of Council 1954).

The amendment permits the Sabah government to claim its rights in lakes, rivers and seabed in its Continental Shelf and, indirectly, strengthens Sabah's claims for its rights under the 1963 Malaysia Agreement (MA63).

Sabah's government is a holistic action in its effort to reclaim its rights in the world.

"The implication of this amendment will be made in the Petroleum Development Act 1974 and the Federal Constitution in general," he said.

Under the MA63, Sabah's boundaries have been set by the North Borneo (Alteration of Borders) Order in Council 1954, which is more powerful when used in international law compared to the local Land Ordinance.

The Sabah (then North Borneo) Order in Council of the North Borneo to the North Borneo to "include the area of ​​the continental shelf and its subsoil which lies beneath the high seas contiguous to the territorial waters of North Boneo" .

Sabah had to start the production of crude oil and then Sabah chief minister, the late Mustapha Harun signed six international oil agreements in 1969 with international oil companies to explore and mine oil with Sabah to receive , among others, royalties of 12.5% ​​of oil concessions.

Under the PDA, Sabah receives only 5% profit based on gross production.

The Pakatan Harapan government, under the leadership of Prime Minister Dr. Mahathir Mohamad, said it would be given 20% to 20% by Sabah but the value would be calculated based on net profit and not gross production.