“UBF: REVIEW SABAH’S PETROLEUM SHARE WITH PETRONAS”
25TH January 2011
Kepayan, Sabah—At a ‘Borneo Tea Party’ hosted by United Borneo Front (UBF) supporter, Andrew Joseph Tuining, in Kampung Ganang, Kepayan, UBF leader Datuk Dr. Jeffrey Kitingan suggested that Sabah’s petroleum share of 5% be reviewed.
In response to a question from a young guest as to how a unilateral decision could be made by the State Government to sign away oil rights to PETRONAS in 1976, Dr. Jeffrey confirmed that by the Petroleum Development Act of 1974, PETRONAS is granted the exclusive right in perpetuity to explore, exploit, win and obtain petroleum onshore and offshore in Malaysia; the rights, liberties, powers and privileges of which shall be irrevocable. In return for this, Section 4 of the Act states that PETRONAS shall make cash payments to the Federal Government and relevant State Governments (where oil is derived) as may be agreed between the relevant parties.