Musa, eyes Petronas shares

It is understood that Sarawak's Taib Mahmud-mentored regime is also seeking to swap royalties for a stake in the Fortune 500 company.

KOTA KINABALU: Chief Minister Musa Aman wants a stake in Petronas instead of oil royalties.

A source close to Musa claimed he has “sent out feelers” to Putrajaya and is waiting to see the federal government’s receptiveness to the idea.

Musa, the source said, is aware of the need to seek a review of the current 5% oil royalty.

But as a leader with a business background, he thinks it’s  more profitable for Sabah if  the state had a stake in the conglomerate, the source said.

Petronas is a Fortune 500 company with diversified interests and investments around the world.

Last year the conglomerate paid RM5.4 billion in petroleum proceeds to the federal and state governments.

Sabah currently contributes a little over 25% of Malaysia’s crude oil production which is about 650,000 barrels a day.

The federal government is presently the sole shareholder of Petronas.

“He (Musa) wants to talk business. He wants shares in Petronas.

“This is best time for Sabah, Sarawak to push (for more). (Prime Minister) Najib (Razak) is weak and needs us,” said the source.

The move could see Sabah and Sarawak earning more in dividends than the 20% that Pakatan Rakyat has been promising to oil producing states if it comes into federal power.

Taib’s move

In KUCHING, meanwhile, it is the understood that the Taib Mahmud-mentored regime is also looking at the business angle, which probably explains Chief Minister Adenan Satem’s reticence on the issue.

A PBB insider when asked texted: “same sentiment here”.

“Taib’s agenda always to swap royalty for dividends, but KL wants full control.”

It is understood that Putrajaya is alert to the Borneo states newfound ‘independence’.

In the runup to the 13th general election, both state and federal opposition leaders had flogged the 5% oil royalty and the Malaysia Agreement 1963 saying the federal government was cheating Borneo and had failed to adhere to the terms of pact.

The campaign earned the opposition 13 state seats in Sabah and 15 in Sarawak, an unprecedented feat.

But despite winning just over 50% of the popularity votes nationwide, Pakatan failed to capture Putrajaya. BN won in the first-past-the-pole system practiced by the Election Commission.

Meanwhile pro-Musa blogger, S Selvaraja when contacted said: “Musa is a businessman.

“It makes business sense to convert Sabah’s oil  and gas revenue into equity in Petronas.

“Giving Sabah government 20% ownership in Petronas is not a financial burden on the federal government. There is no cash transaction.

“Petronas will just have to issue share certificates to the state government.

As a shareholder Sabah will then receive dividends instead of cash payments from Petronas.

“It’s a fair deal,” said Selvarajah.

For more on Sabah and Sarawak visit www.fmtborneoplus.com