KOTA KINABALU: Chief Minister Datuk Seri Musa Aman assured the government will continue seeking more revenue from the oil and gas industry.
Musa said apart from the 5 percent oil and gas royalty, the state also earns from other equities such as Petronas Bintulu LNG9 plant in Sarawak, downstream processing activities in the Sabah Ammonia and Urea project in Sipitang as well as 25 percent equity on onshore production.
He said this at the State Assembly sitting in responding to Datuk Joniston Bangkuai (BN-Kiulu) who asked if the drop in the oil and gas price would have any effect to the state revenue, distribution of allocations and implementation of development projects.
On the 5 percent royalty, Musa explained the state government anticipated the sum of RM1.15 billion from Petronas this year but based on a revised estimation with the drop in oil and gas price, the figure has reduced to RM788 million.
Musa added the government are in constant discussion for an increase on the royalty and are even asked to take over a marginal field (unexploited oil field) in Sandakan, which has been agreed in principle by Petronas, replying to supplementary questions from Datuk Seri Wilfred Bumburing (PR-Tamparuli) and Datuk Dr Jeffrey Kitingan (Star-Bingkor).