Finance Ministry refutes claims that Petronas takes 95% of Sabah and Sarawak oil revenue, detailing profit sharing and cost breakdown.
KUALA LUMPUR: The Ministry of Finance has denied claims that Petroliam Nasional Bhd takes up to 95% of petroleum revenue from Sabah and Sarawak.
Finance Minister II Datuk Seri Amir Hamzah Azizan stated that Petronas’s profit is far lower than 10% after accounting for operating costs, exploration capital, production capital, and sales tax.
“The petroleum industry is developed through production sharing contracts between Petronas and investors,” he said during a Special Chamber session in the Dewan Rakyat.
Amir Hamzah explained that in any PSC, Petronas must make fixed cash payments of 5% to the Federal Government and 5% to state governments based on gross production.
Approximately 80% of revenue covers production costs including operating expenses, exploration capital, and production capital after these payments.
The remaining roughly 10% represents the gross allocation shared between Petronas and investors after tax.
“State governments also impose a five per cent sales tax on petroleum products, which is not included in these figures,” he added.
The minister was responding to Chiew Choon Man regarding claims about petroleum revenue distribution over the past 50 years. – Bernama
