Petronas’ decision not to appeal against SST significant for S’wak O&G rights

Masing on a two-day trip to Bakun HEP Lake recently.

By Peter Sibon

KUCHING, June 13: Petronas’ decision not to appeal against the High Court judgment to impose 5 per cent State Sales Tax (SST) signifies that it recognises Sarawak’s rights over its oil and gas resources, said Deputy Chief Minister Tan Sri Dr James Jemut Masing.

“The fact that Petronas will not appeal against the judgement by High court and will pay the SST amounting to RM2.878 billion, is very significant.

“It means that Petronas recognises the oil and gas found and pumped out since 1974 is in Sarawak territory,” Masing told DayakDaily when contacted today.

While it has won the battle on SST, there was no provision under the law for Sarawak to demand for retrospective payment since the exploitation of oil and gas in Sarawak in 1974.

“(But) what is important is that Sarawak is the license holder, thus any further exploration by foreign companies will need to get the authority from Sarawak government.

“Sarawak government will let Petronas continue to operate since they are among the biggest and excellently managed oil company in the world. This time around they will abide by Sarawak government rules and rulings,” added Masing.

Masing was commenting on Chief Minister Datuk Patinggi Abang Johari Tun Openg’s statement yesterday that Petronas will not appeal against the judgement of the High Court, and will be obliged to pay the 5 per cent SST which was imposed since January 2019.—DayakDaily.