Absurd to get Petros to bear capital costs, says assemblyman

SUPP deputy secretary-general Lo Khere Chiang suggested that Sarawak should receive as much royalty as Guyana gets from ExxonMobil. (Facebook pic)
PETALING JAYA: A Sarawak assemblyman has scoffed at a suggestion for Petroleum Sarawak Berhad (Petros) to bear the capital expenditure that is supposed to be spent by Petronas, the national oil firm.
Batu Kitang assemblyman Lo Khere Chiang described the suggestion as absurd, the Borneo Post reported today.
He was responding to claims by analysts and those in the industry, who were quoted in an FMT report on Tuesday, that making Petros the sole gas aggregator for Sarawak could backfire.
An analyst told FMT on condition of anonymity that capital expenditure supposed to be spent by Petronas must be borne by Petros.
Lo likened the suggestions in the report to “inviting oneself to a friend’s house, sitting down, finishing all the food on the table and then asking the friend to pay for the cost of cooking that meal”.
Lo, who is SUPP deputy secretary-general, said Sarawak had been deprived of a reasonable 30% return of all oil extracted from the state.
“It is absurd and unfair to ask Petros to bear the capital expenditure incurred by Petronas over the years of exploitation of Sarawak’s oil and gas,” he was quoted as saying.
Lo also made a case for Sarawak to receive as much in royalties as what Guyana receives from ExxonMobil or Brunei receives from Shell for exploiting oil resources.
He disputed the view of Petronas founding chairman Tengku Razaleigh Hamzah that only a national oil company such as Petronas would be able to avoid being strong-armed by the seven global oil companies.
Lo said that, based on Tengku Razaleigh’s logic, Sarawak should receive as much as what Guyana is receiving from ExxonMobil, which gave Guyana 40% oil extracted.
Sarawak’s current 5% royalty from Petronas was “grossly unfair to Sarawak” by comparison.
“Similarly, Sarawak should be receiving as much as what neighbouring Brunei is receiving from Shell for exploiting her oil resources,” he said.

Source link