Special panel to work out Sabah oil royalty

Shafie Apdal says the committee will enable a direct link between state and federal government. 'We received 5% before, not we want to add 15%' says chief minister.

Shafie Apdal says a special committee will be a direct link between Sabah and Putrajaya. (Bernama pic)

KOTA KINABALU: A special committee is to pursue the Sabah state government’s demand for 20% oil royalty payment from the Federal government, Chief Minister Shafie Apdal said today.

“We will form a committee to refine (the terms) through our discussions with the federal government particularly the prime minister,” he told reporters while on a constituency visit to his home district of Semporna, on Sabah’s east coast.

“Because we are aware that the Pakatan Harapan manifesto contains matters relating to oil royalty for Sabah but it is somewhat different from what we understand.

“We (Sabah) asked to be given 20% based on royalty,” he said.

“Now it has already been interpreted as different to what we have been told”, a reference to statements by federal leaders that the payment would be based on Petronas profits.

Shafie acknowledged that Sabahans felt strongly that oil-producing states deserved oil royalty payments.

“What we ask for is royalty – we received 5% before and now we ask to add on another 15%.”

“If the improvement (to oil payment) is other than (what was promised), we need to voice this out on a government to government basis. We will not only discuss this but also ensure this becomes a reality,” he said. -FMT