Nearly five decades, only RM49 bln oil royalties for Sarawak while PETRONAS pocketed the lion’s share

KUCHING, Sept 3: Sarawak has only received about RM49 billion in cash payments from Petroliam Nasional Berhad (PETRONAS) between 1975 and 2024 under the five per cent petroleum royalty arrangement, while the remaining 95 per cent of the value of oil and gas resources extracted from the State was retained by the national oil company.

Sarawak legal advisor Datuk Seri JC Fong said although the sum may appear substantial, it represented only a small fraction of the true value of the State’s oil and gas wealth over nearly five decades.
“From 1975 until 2024, Sarawak has received approximately RM49 billion in cash payments from PETRONAS.

“The remaining 95 per cent went to PETRONAS from the oil and gas resources found in Sarawak,” he said in rebuttal to a recent article titled ‘The Chinese Fuzhou hidden hands behind Sarawak’s gas aggregator ambition EXPOSED’.

According to Prime Minister Datuk Seri Anwar Ibrahim, Sarawak’s total financial benefits from the oil and gas industry as of 2024 exceeded RM96 billion.

Quoting from The Edge: “This includes RM49 billion in cash payments and RM28.6 billion in dividends from the state government’s shareholding through the State Financial Secretary of Sarawak in Malaysia LNG Sdn Bhd (MLNG) as of December 2024.

“Additionally, Sarawak received RM18.66 billion in sales tax as of the third quarter of last year.”

Despite these figures sounding substantial, Fong stressed they still fall far short of reflecting the true value of Sarawak’s oil and gas wealth.

That said, he did acknowledge that the State’s modest slice has been used judiciously, funding transformative infrastructure like the Second Trunk Road, coastal highways, iconic bridges, and international secondary schools.

He added, “Upcoming free education for Sarawakians will also be realised through these revenues.

“All these initiatives benefit all communities in Sarawak, not just one ethnic group or the political elite.”

Fong further highlighted how Sarawak, by regaining control of its gas distribution through Petroleum Sarawak Berhad (PETROS), was already channelling direct benefits to the people, including free gas supply for B40 families in Sungai Plan, Bintulu and Quadruplex Ceria, Miri, something PETRONAS had never delivered in over 40 years of operations in the State.

He reminded PETRONAS to respect Sarawak’s legal authority, including recognising PETROS as the sole gas aggregator under the Distribution of Gas Ordinance (DGO), as amended in 2023.

Fong warned that false narratives seeking to tarnish Sarawak’s leadership risk damaging the goodwill of its people, goodwill which has long sustained PETRONAS’ operations in the State.

“All Sarawakians want is due respect from PETRONAS for Sarawak’s laws, sustainable use of its gas resources, and adequate gas allocation to support the State’s Gas Roadmap, which if implemented successfully, could contribute RM130 billion annually to the national GDP,” he said.