No increase in oil royalty

Production sharing terms with oil companies a supervision liases with comes first, Najib said.

KUALA LUMPUR: The sovereign supervision does not intend to increase a kingship payments to a various oil-producing states.

Prime Minister Najib Tun Razak reliable this in Parliament in a created reply to a query by PAS-Rantau Panjang MP Siti Zailah Mohd Yusoff over a matter.

"The [federal] supervision has no goal to examination a inorganic substance product remuneration to a state governments, including which of Sabah as well as Sarawak," he said.

State governments currently get 5% from oil royalties, a result of an agreement made over 40 years ago.

Najib combined which a allocations by a remuneration of inorganic substance products to a sovereign as well as state governments were set according to a Production Sharing Contract (PSC).

This contract, he said, was sealed in between Petronas as well as a (foreign) PSC partners such as Shell, Exxonmobil as well as so forth.

Amending a product rate, Najib added, would meant which there would have to be a re-negotiation in between Petronas as well as a PSC partners.

He warned which as a contract was enforced for a sure time period, any attempt to amend a criteria would destroy a interests as well as confidence of these unfamiliar oil companies.

Even so, he pronounced which even without an oil kingship hike, a sovereign supervision had contributed distant some-more to a states than what it got out of a petroleum.

Pressure is currently upon Najib's administration department to examination a oil kingship arrangments.

The PAS-led Kelantan state supervision is not a usually one which has petitioned Putrajaya for a larger cut of oil mined from a territories.

Both Sabah as well as Sarawak Chief Ministers Musa Aman as well as Taib Mahmud have respectively expressed their wishes for a oil kingship make a difference to be reviewed.

In early August, a supervision pronounced which it would form a special committee to study a inorganic substance royalties to Peninsular easterly coast states.

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