Petroleum Fund another ploy to exploit Sabah oil

The United Borneo Front says setting up the fund is not the right solution for the people of Sabah.

KOTA KINABALU: The proposal to set up a petroleum fund is a another way to tighten the stranglehold outsiders have over Sabah.

United Borneo Front (UBF), a Sabah based NGO, is dead against a proposal by Sabah PKR Secretary, Dr Roland Chia to set up such a fund.

UBF Campaign Director Edward Linggu said setting up the fund is not the “right solution”.

He noted that while only sketchy details were provided by Dr Roland, it appears that the proposed Petroleum Fund will be from Sabah’s oil and gas resources.

“Because it will be decided and managed by Federal Pakatan leaders. In 1963, Sabahans may not have been ready. Now, in 2012, Sabahans are more than ready and capable of managing Sabah and its own resources.

“We cannot rely on and cannot depend on outsiders to decide on the interests of Sabah.

“The time has come for the people and leaders in Sabah and Sarawak to stand united and take charge and not to rely on others to safeguard Sabah and Sarawak’s rights.

“ The resources in Sabah must be protected for the benefit of Sabah and Sabahans and their future generations!” he said.

While agreeing that such a proposal is better than nothing under the BN Government, Linggu nonetheless said there are better ways to ensure the Government and people of Sabah benefit from its oil resources.

He said although there have been reports of new oil and gas finds off the coast of Sabah including its inner waters, and the inking of the RM37 billion joint venture by Petronas a few days ago, it has to be remembered that Sabah’s oil and gas resources are a depleting resource.

He added that the continuous exploitation of Sabah’s oil and gas resources by the Federal Government and Petronas, such as in the case of the siphoning off of the natural gas found off Kimanis to Bintulu, is not acceptable.

“There is no justification whatsoever for Kimanis gas to be piped via a new RM3.5 billion pipeline to Bintulu’

“In the end, Bintulu and Sarawak enjoys the spin-offs of the processing of Sabah’s gas and Sabah enjoys nothing at all except the view of the unsightly pipeline running from Kimanis to Sipitang and the blockage and trouble created by the pipeline to the locals,” he said.

He further noted that the Chief Minister Datuk Seri Musa Hj Aman had in the Sabah 2012 State Budget projected that in 2012 Petronas will receive some RM14.734 billion while Sabah’s 5% portion only amounts to RM0.775 billion.

“Even then, the RM775 million will be completely spent in the 2012 Budget leaving nothing for the future generations in Sabah,” he said.

Linggu thus believed Sabah will continue to be the poorest state in Malaysia under the Barisan Nasional (BN) .

“Now for every 10 poor Malaysians, 4 are in Sabah.  The 6 poor are spread over the other 12 States. What happens then when Sabah’s oil and gas resources are depleted?” he asked.

He then claimed that Malaysia is worse than many other oil-producing countries in the world, when comes to managing of the nation’s oil and gas resources.

To substantiate such a claim, he cited a few examples like the Aceh Province in Indonesia, Khazakstan and Turkmenistan in Russia, and Norway.

“The Aceh Province in Indonesia for example, where it is an autonomous region, it (Aceh) gets 70% of the revenues from its oil and gas resources.

“In Malaysia, Sabah gets 5% only. Is it fair? Is it equitable?” he asked.

He further noted that in the Russian Republic, the Muslim provinces like Khazakstan and Turkmenistan manage their own oil and gas resources.

“They even choose who to explore and exploit their oil and gas resources and sign agreements on their own. It is not decided and not signed by Russia.

“In Malaysia, Sabah’s oil and gas resources is owned and managed by Petronas which is answerable to the Prime Minister, not even reported to Parliament.

Decisions are made by Petronas and agreements signed by Petronas, as seen few days ago, witnessed by the Prime Minister.   Except for some VIPs, ordinary Sabahans are kept in the dark and remain at best on-lookers from afar,” he said.

He went on to note that in Norway, its petroleum resources in the North Sea are tapped and the revenue generated are fully utilized for the Norwegians, those living and those who are yet to be born.

“From a zero starting point in 1990, the “The Petroleum Fund Norway” is now the richest sovereign wealth fund in the world, even larger than Abu Dhabi Investment Authority, and now stands at some USD600 billion (Norwegian Kroner NOK 3,200 billion) in assets.

The Petroleum Fund Norway is managed by Norges Bank Investment Management (NBIM), and subject to ethical guidelines laid down by the Petroleum Fund’s Advisory Council on Ethics.

“In Sabah, the oil royalties received each year are fully spent leaving nothing in investments for the future generations,” he said.