RM2.1bn Petronas ang pow just for Sarawak

Exclusive yearly bonanza for oil and gas contractors in the state

KUCHING: Oil and gas contractors in Sarawak have been given a RM2.1 billion “ang pow” from Petronas, to be given every year.

The figure is the value of yearly contracts that will be set aside by the national oil corporation exclusively for oil and gas contractors in the state, Star Online reported today.

Assistant state communications minister Lee Kim Shin was reported to have disclosed this at the Chinese New Year open house of Sarawak United People’s Party.

He said it was one of the outcomes of negotiations over the state’s demands for higher oil royalties, and that Chief Minister Adenan Satem had taken a firm stand on Sarawak’s “poor deal” in receiving a 5% royalty for decades.

Besides the RM2.1 billion allocation Petronas would also give more shares to subsidiary companies. “All this while, Sarawakian companies were just sub-contractors. The main contractors came from outside. Most of our companies have been in the oil and gas industry for more than 100 years. We have the most experience,” he was quoted as saying.

Last year the state assembly adopted a motion supported by all parties urging the federal government for more oil and gas benefits.