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August 20, 2012

S’wak to discuss oil royalty review with federal govt

Filed under: 13th General Election — Pengayau @ 7:47 pm

‎”The state government will discuss the need to review the current 5% petroleum royalty paid to Sarawak with the federal government based on the prevailing close relationship and goodwill between both sides, Chief Minister Abdul Taib Mahmud said today.”

Factual facts

1. It is his uncle, the 3rd Chief Minister of Sarawak, Tun Rahman Yaakub who sign the agreement (Petroleum Development Act 1974) in 1976 on behalf of the Peoples of Sarawak, on behalf of Sarawak Government granting RIGHTS, POWERS, LIBERTIES AND PRIVILEGES IN RESPECT OF PETROLEUM in perpetuity (FOREVER!), thus granting the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether lying onshore or offshore of Sarawak to PETRONAS!!

2. It is his uncle, Tun Rahman Yaakub who agreed with 5% Oil Royalty which to be paid CASH annually and directly to the State Government in return for the ownership and the rights, powers, liberties and privileges vested in it by virtue of PDA 1974. http://www.agc.gov.my/Akta/Vol.%203/Act%20144.pdf

3. Under United Nations Convention on the Law of the Sea (UNCLOS),http://en.wikipedia.org/wiki/United_Nations_Convention_on_the_Law_of_the_Sea state has special rights over the exploration within 12 nautical miles from shore but when we sign the Petroleum Development Act 1974, we gave EXCLUSIVE RIGHTS POWERS, LIBERTIES and PRIVILEGGES in respect of the said petroleum, and to control the carrying on of downstream activities and development relating to petroleum to Petronas!

Within 200 nautical miles from shore is called Exclusive Economic Zone (EEZ) and its all goes to FEDERAL!

Those 5% Oil Royalty that being given to us now is only for any mineral resources exploited within 3 nautical miles from shore! What about another 9 nautical miles?

4. Fast forward 36 years after the agreement being signed with Petronas, NONE of our Sarawakians leaders has the guts to request or even demand for a better deal, better Oil Royalty for Sarawak.

5. We’re 20 years left behind in terms of basic infrastructures compare to Malaya.

6. We are Rich but yet we are Poor! Sabah/Sarawak, the Poor Rich Kids!

7. Only now the most beloved Chief Monster of Sarawak finally has an “inspiration” to negotiate a better deal on Oil Royalty for Sarawak? Well Taib Mahmud as “The Wise Old Man” know that he has the upper hand to make a “deal” with Najib as the fate of UMNO/BN lies in the hand of Sabah, Sarawak in this upcoming General Erection

8. Sabah has 25 and Sarawak has 31 Parliamentary seats respectively and Taib know very well that Sabah/Sarawak is the Kingmaker in every sense of words for both PR or BN

Jumlah Royalti Minyak Mac 1990 – 2008 (RM Billion)

Kerajaan Persekutuan: RM33.3 , Sarawak: RM11.9 , Sabah: RM3.4 , Terenganu: RM18

“Hasil minyak yang dapat dicarigali daripada telaga2 minyak yang terdapat di perairan negeri2 yg saya sebut kan sebentar tadi termasuk di kawasan luar milk negeri2 berkenaan”Sarawak : RM11.9 Bilion (For 18 years) = 5% Oil Royalty. 100% divide with 5 = 20RM11.9 Billion x 20 (100%) = RM238 Billion (Actual income for 8 years!!)RM13.2 Billion average per year but we only get RM0.66 Billion per year based on 5% Royalty

PR in Buku Jingga among others vows to :

Recognizing the position of Sabah and Sarawak as equal partners in the Malaysian Federation, and honouring previous agreements made,

1. Reinstate autonomy to Sabah and Sarawak in line with and within the framework of the Federal Constitution and the Federation Agreement.

2. Increase the royalties paid on petroleum and hydrocarbon resources to Sabah and Sarawak to 20% from the present 5%.

3. Establish a Royal Commission to solve the chronic problem of illegal immigration and citizenship in Sabah.

4. Assist bring the level of infrastructural development in Sabah and Sarawak up to par with other states of the Federation.

5. Promote national integration between Sabah, Sarawak and Peninsular Malaysia through a fair power-sharing arrangement that fully upholds the spirit of the Federation.

Meanwhile, over the Sabah Sarawak Keluar Malaysia Facebook Page

Muhammad Amirul Ismail : We have right on oil discovered more theb 3 nautical miles as the international doesnt apply to us since the queen gave special rights on swak to own more then this limit. Sarawak gave up the right without the people permission. This act in all its nature is unconsrituitional and any future leader must act to stop this. Janji kita sudah lama ditetapi and its now to disobey them!

Leslley Kalom ‎: I beg to differ bro, any nation/country in the world were binded with United Nation Convention/Declaration if they were among the signatories, in this context, i believe Malaysia is one of the UNCLOS Signatories

However, that is just Convention/Declaration, the prerogatives till lies in the Government wether to adapt it into our Laws

As the UNCLOS clearly stated, “State has special rights over the exploration within 12 nautical miles from shore”

In layman terms, STATE has 100% Rights/Control over any exploration within that 12 nautical miles, beyond that everything goes to Federal.

I heard one of the states in Nigeria claim for the exact Rights. It is the prerogatives of States wether or not to share anything within that 12 nautical miles with Federal.

Im not sure what Special Rights that being given by the Queen to us

Muhammad Amirul Ismail : Not realy esp i believe her majesty declaration was made b4 malaysia Signed the un. Means we already have such agreement b4 malaysia join the un. Swak never joined the un hence the declaration still valid. This explain why 3 nautical miles dowsnt apply to sarawak.

Tun razak wanted swak oil by using this law and declare federal can come n drill oil on swak offshore. Then this evil plan stoped by tun rahman using this very declaration. Tun rahman ready to bring this matter to international court.unfortunately sumhow tun rahman succumbed to the will of the federation. Y and how i no one know till today 😦

Muhammad Amirul Ismail: Malaysia must obey the declaration but in swak case our oil 100% ours and no act can be used to take this from us. No referendum was made n the
Act is already against malaysia constituition in matter regrads of our sovereignity. If swak gov say no, we can stop any oil drilling anytime. Did you know that swak gov must first give prmission to any company that want to operate in swak. So petronas can drill oil but if swak dont approve its operation in iur offshore still petronas cant drill them. We can use this tactic too. 😉

Muhammad Amirul Ismail: You can have our oil, but with no approval of drillig it then you cant have it. Try taking the oil with no drilling 😉

Leslley Kalom ‎ : Which declaration that u’re talking about bro? Other than UNCLOS and PDA 1974, i know no other document/agreement

Im working in Oil % Gas Industry and i know this very well.

No, Sarawak Government CANT stop any exploration in Sarawak waters, im refering to PDA 1974

Please enlighthen me as i may be wrong

Muhammad Amirul Ismail : I need to find rhe declaration made by te queen on swak oil. Kuli also mention this declaration too. Pda is invalid and the implementation is also unfair. Swak can deny this act like we deny many act b4. It may cause disatisfaction by federal gov but what they can do?

Ku Li: PDA supersedes all pre-Merdeka oil contracts

Kelantan’s oil royalty champion, Tengku Razaleigh Hamzah said today that Sarawak’s oil royalty may have been arranged when it was still a British colony but as it is now a part of Malaysia, it is subject to the rules laid down in the Petroleum Development Act (PDA) 1974.

The Kelantan prince was responding to a statement from former Sarawak Chief Minister Tun Abdul Rahman Yakub who in an enclusive interview with The Malaysian Insider yesterday claimed the Borneo state’s cash payments from the federal government were a result of a 1954 declaration by Queen Elizabeth II that its territorial waters were not limited to only three nautical miles from its coast.

“He’s right,” Razaleigh (picture) replied when asked if he agreed with Abdul Rahman.

But, he added quickly that the arrangement was no longer binding on the federal government.

Sarawak, together with its sister Borneo state, Sabah, joined the peninsular to form the Federation of Malaysia in 1963.

“The Petroleum Development Act supersedes all previous laws and Acts,” Razaleigh stressed.

Abdul Rahman, who was Sarawak Chief Minister when the Petroleum Development Act (PDA) came into force in 1974, had told The Malaysian Insider yesterday that unless Kelantan could prove that its territorial waters extended beyond the three nautical mile limit, it could not claim royalty payments for oil found offshore.

“Of course if oil is found within the three mile limit it belongs to the state. If it is found offshore then it belongs to the federal government,” the 82-year-old former Sarawak CM said in an interview in Kuching.

He said the legal position of the states in peninsular Malaysia was different from that of Sabah and Sarawak. Abdul Rahman said that Sarawak was entitled to oil royalties because Queen Elizabeth had declared in 1954 that the east Malaysian state’s territorial waters extended beyond the three-nautical-mile limit.

The British monarch’s declaration was used by his Sarawak administration to negotiate payments for the state, said Abdul Rahman. He did not, however, want to comment on why the federal government had paid royalties to the Terengganu government.

The Barisan Nasional federal government recently took out full page advertisements in Malay weeklies listing eight questions and answers to rebut Tengku Razaleigh Hamzah’s argument that Kelantan and all other states are entitled to the 5 per cent oil royalty under the Petroleum Development Act 1974.

The federal government’s main argument is that oil and gas are extracted from waters that are beyond the three-nautical mile limit prescribed as territorial waters under Malaysia’s Emergency Ordinance (Essential Powers) No 7 1969.

The advertisement also explained that oil royalty payments for Sabah and Sarawak was due to agreements made prior to 1974 and through the Continental Shelf Act 1966.

However, Petronas had been paying Terengganu the 5 per cent oil royalty since offshore production began in 1978 but stopped after PAS captured the state in the 1999 general elections. It promised to resume twice-yearly direct payments from March 2009 after the earlier payments were converted to compassionate payments disbursed by federal agencies.

Oil was first discovered in the South China Sea off Terengganu in 1973, a year before Prime Minister Tun Abdul Razak Hussein directed Tengku Razaleigh to form Petronas and become its founding chairman. Read more here

Muhammad Amirul Ismail ‎: unfortunately im still searching the document. If any of you found such declaration, pls share here.

Andrew Alif : this Rahman was too generous to give away our oil and gas

Muhammad Amirul Ismail ‎: the price–ultimate power for him and his family over sarawak

Andrew Alif and it is not good for us

Muhammad Amirul Ismail Moral of the story- WHY cant sarawak mine the petroleum themselves then distribute that 5% to federal, 5% to state coffer, the rest for reinvestment. WHY MUST federal gov. do that for us. It like here is my money, distribut for me, any extra giva back. Nobody are that stupid unless… well you know

Andrew Alif It was a big big mistake bro..and nowadays it benefits them.

Leslley Kalom ‎: Thats my point, although there is Declaration by Queen Elizabeth in 1954 that our territorial waters goes far beyond the 3 nautical mile limits from shore, PDA 1974 supersedes it.

Therefore there is no point for us to talk about the Declaration as it no longer bear any legal binding since we’ve form Malaysia and that Declaration is Pre Merdeka, Pre Malaysia arrangement

Rahman Yaakub arguement remain as arguement but it is not valid. That old man is just rubbishing just to cover the fact that he sold Sarawak Rights over Oil & Gas to Petronas

If we refer to Section 4 of PDA 1974, it clearly stipulated that :

Cash payment by the Corporation

4. In return for the ownership and the rights, powers, liberties and privileges vested in it by virtue of this Act, the Corporation shall make to the Government of the Federation and the Government of any relevant State such cash payment as may be agreed between the parties concerned.

The cash payment should be paid as agreed between State and Federal. In this context, Federal decide to gave us only 5% and i believe that is within that 3 nautical miles from shore, beyond that, everyting goes to Federal but our only ARGUEMENT now is :

Under United Nations Convention on the Law of the Sea (UNCLOS),http://en.wikipedia.org/wiki/United_Nations_Convention_on_the_Law_of_the_Sea state has special rights over the exploration within 12 nautical miles from shore

Those 5% Oil Royalty that being given to us now is only for any mineral resources exploited within 3 nautical miles from shore! What about another 9 nautical miles?

Before that, we need to established wether Malaysia is one of the SIGNATORIES of UNCLOS or not?

If YES, within how many nautical miles that we agreed. Please bear in mind that 12 nautical miles is the MAXIMUM and every country might agreed to certain limits but still within that 12 nautical miles

Muhammad Amirul Ismail There a point. We own our petroleum and any UN declaration brings no weight at all if sarawak are not the one interested in it. We defend our territories and sovereingty and UN cant make us accept it. UN have no power on sarawak at all. It is not us that bind such agreement and nobody ask us to accept. But we share common belief- Sarawak oil belongs to sarawakians. Thats a fact.

I wonder what will happen if we suddenly say- nope we refuse to follow this act anymore and we veto them now. Federal gov cant force us to accept since we have power to refuse any act. It is the voice of sarawakian that matters.

If we just did that, what can federal gov do to us. Econimic sanction?? I dont think so.

Leslley Kalom Rhetorically speaking yes but how? How we want to get 100% of our Oil & Gas or mabye 95% and gave 5% to Federal?

Under which Law? Which Declaration?

We need to established strong argumemt to supersedes these Laws

1.PDA 1974

2. Article 150 – Emergency Powers

Malaysia is technically still under State of Emergency.

4 Proclamation of Emergencies issued by the Yang di-Pertuan Agong that is yet to be revoked.

1964 (The Malaysian-Indonesian Confrontation)

1966(Constitutional crisis in Sarawak)

1969 (May 13th racial riot)

1977(Constitutional crisis in the state of Kelantan)

Under Article 150 of the Constitution, once astate of the emergency is declared, the executive may invoke powers to override constitutional provisions.

This article allows a proclamation of emergency in situationwhere there is a threat on the security, public life or public order in the country.

Ps : So bro Muhammad Amirul Ismail, what is our Counter Arguement?

Andrew Alif : The only way is to push them to review this matter..now is the right time to do that, and i still believe Taib can do it for us and the current political situation is very encouraging.

Leslley Kalom : The only way is to push for a review from 5% to at least 20% and that should be from any Oil & Gas found within 3 nautical miles from shore

The rest we deal with it later in the future, at least it is much better than present status quo

Muhammad Amirul Ismail ‎: i agree to that point. Once we get a glimpse of chance, we can move forward. 100% may not for now but at least we might be able to have the right government that can prepare us for 100% deal latter 🙂

Leslley Kalom Yes, one at a time. 20% is only the beginning. Nobody know what going to happen in the future with the younger generation like us become the LEADER to lead us Sabah/Sarawak into a better deal, better negotiation with Malaya.

I have to admit, im a member of PKR, yes Malaya based Opposition Party lead by Leaders from Malaya but mind you, PKR Sarawak Leaders is not a coolie to Malaya, its just a matter of Political platform

If one day they reneged their promise, there goes Plan B which is?

That is the most practical solution


We cant seccede from Malaysia but we can be KICKED OUT from Malaysia like what Tunku Abd Rahman did to Singapore in 1965.Do you think that UMNO Malaya stupid enough to KICK US OUT from Malaysia?In 10 years time.without Oil&Gas resources from Sabah and Sarawak,Malaya would be a BANKRUPT NATION!!!!

But Politically,we CAN do that.We can BE kicked out from Malaysia.How?It would not be that easy,dont forgot ISA,but it is not IMPOSSIBLE,it is just near IMPOSSIBLE

This is how we can do it:

1.Set up a Borneo Based Political Party

2.Gain control of Borneo states namely Sabah and Sarawak through electoral proceess

3.Persuade the Federal Government to Re-Look back at the 20/18 Point Of Agreement

4.If they refused to do so,organised a Statewide campaign,go to every corner of the States and convinced the Rakyat that we should pull out from Malaysia and try to get their absolute support

5.Send a referandum to United Nation that we are UNHAPPY with the way the Federal Government treat us as(State-Federal Ties)

6.Request the United Nation to send a Delegation for a Fact Finding Mission similar to the Cobbold Commision before to get the feedback and consensus from the peoples of Sabah and Sarawak.

But bear in mind,this will not happen without repercussion from the Federal Government and ISA is the anwer of all this.Datuk Jeffry Kitingan was once being held under ISA and he has been accused of trying to pull out Sabah from Malaysia and is that TRUE?No,he merely request for the 5% Oil Royalty to be review.

He and his brother Joseph Pairin Kitingan has been harrased and being charged with Corruption.This is the begining of the fall of PBS Government in Sabah and UMNO take over since then

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