By DayakDaily Team
KUCHING, Sept 4: Petroliam Nasional Berhad (PETRONAS) has profited approximately RM2.25 trillion from Sarawak’s oil and gas resources through its upstream production and downstream operations, while the State has only received 5 per cent royalty, amounting to RM50.15 billion, over the past five decades.
In a statement, an industry insider highlighted that from 1974 to August 2025, Sarawak’s 5 per cent royalty payments from PETRONAS totalled RM50,145,128,328.12 (RM50.15 billion), which represents only a fraction of the value of oil and gas produced in Sarawak and sold by PETRONAS.
By simple calculations, PETRONAS’ revenue during this period was around RM1 trillion, as previously pointed out by Senator Robert Lau.
In addition, it was made to understand that PETRONAS’ downstream operations, particularly the sale of liquefied natural gas (LNG) processed from Sarawak’s natural gas, generated an estimated average of RM50 billion annually from 1990 to 2025.
Over 25 years, this totalled roughly RM1.25 trillion and combined with upstream revenue, PETRONAS’ total earnings from Sarawak amount to RM2.25 trillion.
By contrast, royalty payments to Sarawak from 1975 to August 2025 amounted to just RM50.15 billion, with RM2.54 billion disbursed in 2024 and RM2.23 billion so far in 2025.
According to a Feb 17, 2025 report by The Edge, Prime Minister Datuk Seri Anwar Ibrahim disclosed that Sarawak’s total financial benefits from the oil and gas sector as of 2024 exceeded RM96 billion, comprising RM49 billion in cash payments, RM28.6 billion in dividends from the State’s equity in Malaysia LNG Sdn Bhd (MLNG), and RM18.66 billion in State Sales Tax (SST).
It is important to note that the SST was only payable after the High Court affirmed Sarawak’s constitutional right to impose the tax on petroleum products. Meanwhile, the RM28.6 billion in dividends stem from investments made by the Sarawak government in four LNG plants in Bintulu; these were not gifts from PETRONAS, nor did the State receive free shares in the plants.
In total, the royalty, SST, and dividends amount to RM96 billion, an amount dwarfed by the RM2.25 trillion that PETRONAS earned from Sarawak’s resources.
The insider emphasised that Sarawakians are not seeking to undermine PETRONAS. Rather, they are asking for a fair share of revenues from oil and gas produced in Sarawak, as well as a greater equity stake in LNG companies to increase dividend returns, which is a legitimate and reasonable request.
This sentiment was echoed by Sarawak legal advisor Dato Sri JC Fong in rebutting allegations published by online portal Politikonomi two days ago, where he stressed that Sarawak has prudently used its modest share to fund transformative projects benefiting all communities, including the Second Trunk Road, coastal roads, iconic bridges, electricity and water supply improvements, international secondary schools, energy transition initiatives, and upcoming free tertiary education in 2026.
Fong further noted that by regaining control of gas distribution through PETROS, Sarawak has begun delivering tangible benefits to citizens, supplying free gas to B40 households in Sungai Plen, Bintulu, and Taman Ceria Quadraplex, Miri, with plans to expand statewide.
He emphasised that Sarawak’s rights are enshrined under the Malaysia Agreement 1963 (MA63), which vests legislative authority over electricity and gas distribution in the Sarawak Legislative Assembly.
Fong added that PETRONAS should recognise the role Sarawak has played in the company’s growth. Attempts to smear Sarawak’s leaders risk undermining the goodwill of the people, with potential repercussions for both PETRONAS and national unity.
“Sarawak is not seeking conflict, only respect and fair treatment. Sarawakians want recognition for their laws, sustainable use of gas resources, and adequate gas allocation to support the State’s Gas Roadmap. If successful, this initiative could contribute RM130 billion annually to Malaysia’s GDP, advancing Sarawak’s vision of ‘Sarawak Maju Makmur’ while supporting the prosperity and harmony of the federation,” Fong said.
These came in response to an article titled “The Chinese Fuzhou hidden hands behind Sarawak’s gas aggregator ambition EXPOSED”, alleging that several Sarawak leaders and PETROS are part of a so-called “hidden Fuzhou hand” controlling the State’s oil and gas policies and that PETROS would cripple PETRONAS. — DayakDaily
