By DayakDaily Team
KUCHING, Nov 29: Batu Kitang assemblyman Dato Lo Khere Chiang has dismissed experts’ claims that designating Sarawak as the sole gas aggregator for natural gas would be costly for the State and national oil giant Petroliam Nasional Bhd (PETRONAS), calling such views “absurd and illogical.”
Lo cited the South American country Guyana’s success story as evidence of the potential benefits of fairer resource-sharing agreements.
“Guyana, once a very poor nation, became one of the world’s fastest-growing economies after its leaders partnered with ExxonMobil in a 60:40 deal. Under the arrangement, ExxonMobil covered all capital expenditures and received 60 per cent of extracted resources, while 40 per cent was returned to Guyana.
“In less than a decade since its first major oil discovery in 2015, Guyana’s Gross Domestic Product (GDP) has soared to USD23 billion,” he explained in a statement today.
His remarks were in response to an article published by Free Malaysia Today (FMT), which urged caution in negotiations between PETRONAS and Sarawak over the State’s demand to assume the gas aggregator role through Petroleum Sarawak Bhd (Petros).
The article argued that both parties could suffer significant losses if an agreement is not reached. Experts also claimed Sarawak might lose more than it hopes to gain by taking over control of natural gas distribution and sales.
Lo pointed out that Peninsular Malaysia has siphoned an estimated RM80 billion annually from Sarawak’s oil resources for the past 60 years, yet Sarawak has only received five per cent of this wealth in return.
“Despite this, Sarawak has built up RM40 billion in reserves, the highest among Malaysian states, while Malaysia owes RM1.3 trillion in external debt.
“If ExxonMobil can give Guyana 40 per cent of its oil wealth, PETRONAS should do the same for Sarawak. The current 5 per cent is grossly unfair,” he stressed.
Lo questioned claims in the article suggesting investments in Sarawak’s oil and gas infrastructure would dry up without PETRONAS.
“Where have the billions siphoned from Sarawak gone? Why is PETRONAS not required to declare its profits, and how has the nation’s most valuable asset been managed? Malaysians have the right to know,” he added.
He also dismissed the argument that Petros, if appointed as the aggregator, would not secure deals as favourable as PETRONAS.
“How does the writer justify the meagre five per cent Sarawak has received? Petros is likely to achieve far better terms by partnering with other industry players.”
Lo also criticised the notion that Petros should bear the capital expenditure currently handled by PETRONAS. “It’s like inviting yourself to someone’s house, consuming all the food, and then asking the host to cover the cooking costs. After decades of exploitation, it’s absurd to expect Petros to shoulder these costs,” he argued.
He referenced PETRONAS founding chairman Tan Sri Tengku Razaleigh Hamzah, who argued that only a national oil company backed by the federation can resist pressure from global corporations.
Lo countered, saying, “By this logic, Sarawak should receive deals as favourable as Guyana’s or even Brunei’s agreements with Shell.”
He expressed support for Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg’s efforts to reclaim Sarawak’s oil and gas rights through constitutional means.
He called for unity among Sarawakians to back the Gabungan Parti Sarawak (GPS) government’s fight for rights enshrined in the Malaysia Agreement 1963 (MA63), the Sarawak Land Code, and the Sarawak (Alteration of Boundaries) Order in Council 1954.
“Sarawakians must rally behind our Premier and the GPS government to ensure we regain control of our oil and gas resources. Our sovereignty over these resources is unquestionable,” he concluded. — DayakDaily
