AN analyst at the news portal, Free Malaysia Today, has alleged that the claim PETRONAS retained 95 per cent of Sarawak’s oil and gas is misleading.
The fact is that from 1974 to 31.08.2025, the 5 per cent royalty cash payment Sarawak received from PETRONAS totalled RM50,145,128,328.12. This represents 5 per cent of the value of oil and gas produced in Sarawak and sold by PETRONAS.
As 5 per cent of the value of oil and gas sold by PETRONAS from 1974 to August this year is RM50 billion, then by simple calculations, the revenue that PETRONAS earned during this period is RM1 trillion, as rightly pointed out by Senator Robert Lau.
Additionally, PETRONAS sold liquefied natural gas (LNG) processed from the natural gas produced within the boundaries of Sarawak, and from 1990 to 2025, obtained from LNG sales, which from available public records, amounted to an average of RM50 billion annually.
LNG sales over a period of 25 years amounted to RM1.25 trillion. Thus, the total revenues PETRONAS obtained from its major businesses, upstream and downstream, is RM2.25 trillion.
In contrast, the oil royalty received is only RM50 billion for the period from 1974 to 2025.
Yes, Sarawak did receive State Sales Tax (SST) of RM18.66 billion, but only after the High Court ruled that the Sarawak Government can impose SST on petroleum products.
This amount of SST is what the Sarawak Government is constitutionally entitled to impose, not only on PETRONAS but other oil companies operating in Sarawak.
Regarding the RM28.6 billion dividends received by the Sarawak Government, this dividend is from investments paid for by the Sarawak Government in the four LNG plants in Bintulu.
Sarawak did not receive any free shares from PETRONAS in these plants. The dividends were not a gift from PETRONAS.
Overall, the oil royalty of RM50 billion, the SST of RM18.66 billion, and the dividend of RM28.6 billion amounted to only RM96 billion, which is very small compared to the RM2.25 trillion that PETRONAS earned from its upstream and downstream businesses in Sarawak.
What Sarawakians are asking for is a fair and equitable share in the revenues derived from oil and gas found and produced in Sarawak, and a greater share in the equity in the companies that own the LNG plants so that its share of the dividend could be increased. That is a legitimate and fair request.
The additional revenues from the State will be used for the development of the State and to benefit the people of Sarawak through the building of infrastructures like roads and bridges, and providing electricity to nearly 99 per cent of the rural population, setting up international schools to uplift the education standards and opportunities for the youths, and providing them with free tertiary education, and to advance its energy transition and decarbonisation programmes.
PETRONAS must appreciate that its current status as a Fortune 500 company owes much to the revenues it earned from Sarawak and the goodwill of Sarawakians who provided a conducive and peaceful environment for PETRONAS to conduct its business in the State.
Far from trying to undermine PETRONAS, Sarawakians want PETRONAS to continue operating in the State, but our laws must be respected, and our interests must not be ignored.
It is hoped that individuals like the analyst would at least acknowledge that PETRONAS should be grateful to Sarawak and not promote mistrust, resentment and misunderstanding between West and East Malaysians.
DISCLAIMER:
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune.
