NATIONAL
Resolve Sarawak oil demands through unity, fairness, says opposition leader
Opposition leader Hamzah Zainudin says Sarawak should negotiate directly with Petronas on commercial terms, but without undermining national unity. - SinarHarian/Filepic
KUALA LUMPUR: Opposition leader Hamzah Zainudin has called for Sarawak’s oil and gas demands to be addressed “in a spirit of unity and fairness”, saying negotiations should be approached in a manner that strengthens national cohesion rather than one that deepens divisions.
“Petronas is meant for the country. Sarawak is also part of Malaysia,” the Perikatan Nasional deputy chairman told FMT, adding that the situation calls for constructive dialogue.
Instead of confrontation, there should be collaboration, Hamzah said, highlighting Petronas’ stature as the only Malaysian company on the prestigious Fortune Global 500 list.
“Sarawak should work with Petronas and strike a deal—just as any other country does,” he said.
Hamzah, the Bersatu deputy president and Larut MP, said that in the oil and gas sector, host nations typically receive up to 15% in royalties.
“It can be 15% or lower,” he said, bearing in mind that, as part of the federation, Sarawak also benefits from dividends Petronas pays to the country.
Asked about Sarawak’s claim for a higher royalty payment, Hamzah said the matter could be discussed. He, however, cautioned against giving in to excessive demands, saying it could undermine national unity.
“There are no other companies in the whole world who will come and say: ‘I’ll give you royalties of 40% for the oil reservoir that you have.’ That is not fair,” said Hamzah.
On Sarawak’s push to control the gas aggregator role, Hamzah said the real question to be asked is whether it allows for a viable business model.
“They can ask for it. But remember one thing: it’s not about the policies, it’s about the business model, so that everyone can have a fair share of the cake,” he said.
Hamzah called for the issue to be depoliticised, saying federal and state leaders should avoid framing the issue as a battle between Putrajaya and Sarawak. Instead, he said, the state should be engaged in direct negotiations with Petronas.
He said the national oil company was in the best position to decide on a fair royalties formula. “They have the analysis. They have the data. They should come up with a fair deal for everyone.”
Hamzah said the same principle of fairness should apply to all states with natural resources. “If, for example, my state, Perak, has a lot of gold, do it together. But the royalty must be given to the state accordingly.”
Ultimately, Petronas, being “the goose that produces the golden egg” should be preserved “for the future of the people of this country,” he said.
