We can no longer compromise on oil

Jeffrey Kitingan's State Reform Party (Star) is proposing a complete reform of a stream oil as well as gas agreement with Sabah.

KOTA KINABALU: The Jeffrey Kitingan-led State Reform Party (Star) chapter in Sabah wants a chartering of a oil as well as gas attention in Sabah to be left in State hands. Currently chartering is underneath Federal control.

This is among several points listed in a party's 'Petroleum Masterplan' which was denounced here yesterday.

According to Kitingan a "rights of Sabah as well as a welfare of a people can no longer be compromised by a continued exploitation of a oil resources during a expense of a people ofSabah."

"We cannot rest upon as well as cannot depend upon outsiders to decide upon Sabah's oil as well as gas resources which belong to all Sabahans."

Kitingan pronounced a masterplan was conceived based upon a rationale which "Sabah Oil as well as Gas Resources Belongs to All Sabahans".

The masterplan, he pronounced additionally included a examination of a money kingship remuneration from a stream 5% to 50%, investiture of PetroSabah Corporation as well as a PetroSabah Wealth Fund as well as a Sabah Petroleum Advisory Council.

Explaining further, he pronounced a Sabah Petroleum Advisory Council will advise upon as well as oversee a formulation as well as policies for Sabah's oil as well as gas resources, while PetroSabah Corporation will spearhead a growth of a oil as well as gas attention in Sabah.

"Getting usually 5% from a oil resources is no longer acceptable today. If this continues, Sabah will continue to sojourn as a poorest State in Malaysia.

"The Masterpla! n will i nvolve a three-pronged strategy which will find a examination of a existing arrangements upon Sabah's oil as well as gas resources .

"It will additionally demeanour during a overall growth of a oil as well as gas attention in Sabah as well as a function of a oil as well as gas resources for Sabah as well as Sabahans first as well as a preservation as well as investment of a oil revenue for a contentment of Sabahans as well as for a destiny generations," Kitingan explained.

He promised which underneath such a plan, Sabahans will suffer cheaper petrol, motor fuel as well as gas products, reduce electricity rates as well as suffer annual grants from revenues generated from a State's oil as well as gas.

Review of Kimanis-Bintulu pipeline

He pronounced Star additionally porposed which special taxation incentives be since to oil as well as gas-powered plants in Sabah as well as which a Federal Government give PetroSabah Corporation tax-exempt status.

Kitingan pronounced a master devise additionally famous a fact which oil as well as gas are quick exhausting resources as well as will be tired in destiny despite brand new announcements of brand new oil as well as gas finds off a coast of Sabah.

"Bearing this in mind, a third strategy of a master devise will be find to deposit a little of a oil as well as gas revenues as well as during a same time to yield for a good as well as contentment of Sabahans.

"The oil as well as gas revenues need to be withheld as well as invested for a destiny of Sabah as well as all Sabahans as well as cannot be unconditionally used in a annual State Budget as now practiced by a Government," he said.

He added which a "PetroSabah Wealth Fund" will additionally be determined underneath a master plan.

The account will be entrusted to deposit Sabah's oil as well as gas revenues for a destiny generations. The investment discipline as well as criteria wil! l be for mulated by a Advisory Council.

"It is due which 12.5% of a annual profits of PetroSabah Corporation be set aside to yield for Sabahans as well as another 25% will be invested in a PetroSabah Wealth Fund," he proposed.

Kitingan did not leave out a argumentative RM3.5billion Kimanis-Bintulu Gas tube project.

The tube will channel gas from Sabah to Sarawak withdrawal little for Sabah. Kitingan additionally remarkable which Blocks L&M have been signed divided by a Federal Government to Brunei as well as which little was well known of a oil dealings over Labuan, which was once part of Sabah as well as is now a Federal Territory.

Petronas contingency be accountable

Kitingan pronounced a master devise will additionally examination a tube plan as well as assurances since by Petronas as well as a Federal Government inclusive of a pledge to leave sufficient gas for Sabah's use as well as examination of sales taxation revenue upon oil as well as gas products in Sabah.

The offer additionally includes a request to a Federal Government for a special funding for inorganic substance products homogeneous to a volume of oil extracted from Sabah for consumers in Sabah.

"Sabah consumers should pay less for petrol, motor fuel as well as gas products compared to their counterparts in Semenanjung," pronounced Kitingan who remarkable which following a 1976 air crash tragedy which killed afterwards Chief Minister Fuad Stephens as well as several comparison members of a cabinet, a State Government had signed divided 100% of a State's oil as well as gas resources.

It even gave up a pick up of a 5% oil royalties as well as supposed a money remuneration underneath a Petroleum Development Act, 1974.

"If Sabah had not waived collecting a 5% oil royalties, today, Sabah will be receiving during slightest 10% of a revenue from a oil resources, 5% oil royalties as well as 5% money payment," he said.!

< div> He remarkable which in 2012, Petronas is approaching to embrace RM14.734 billion from Sabah oil resources while Sabah will embrace usually RM0.775 billion as well as none is specifically invested for destiny generations.