PM: Let's not kill Petronas in oil royalty negotiations
Published on: Tuesday, September 18, 2018
PRIME Minister Tun Dr Mahathir Mohamed said Petronas will lose money if 40 per cent of its operating cost is taken out just for oil royalty payments for Sabah and Sarawak.Asked on how long it will take the Federal Government to decide to increase Sabah's oil and gas royalty from 5 per cent to 20 per cent, he said there was a need to maintain Petroliam Nasional Bhd's (Petronas) strength first before deciding to pay Sabah 20 per cent royalty."We don't want to kill Petronas. Petronas is a unique company in the world because it is the only national company that goes into exploration, development, production and petrochemical, and people all over the world are asking Petronas to do work in their country.
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"So, (if) we reduce Petronas to just collecting royalty, then we will lose a lot of things (opportunities)," he said.Stay up-to-date by following Daily Express’s Telegram channel.
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