Sabah Petronas Ink Historic Agreement On Oil And Gas Development


 
Chief minister Hajiji Noor (standing, left) together with Petronas chairman Mohd Bakke Salleh (standing, right) witnessing the CCA signing ceremony in Kota Kinabalu today.KOTA KINABALU: The Sabah government and Petronas today signed a Commercial Collaboration Agreement (CCA) to further enhance the collaboration between the two parties in developing the oil and gas industry in the state.
The signing ceremony was held in the state capital and was witnessed by chief minister Hajiji Noor and Petronas chairman Mohd Bakke Salleh.
In a statement following the ceremony, Prime Minister Ismail Sabri Yaakob welcomed the agreement between Sabah and Petronas, saying it signalled joint efforts to develop the sector in the state.
It also symbolised the commitment of the federal government to work with the Sabah government to bring about development which would benefit everyone equally, he said.
“The strategic partnership will give an economic windfall to the state. The deal will also enable the state government to play a bigger role in developing the oil and gas industry through close partnership with Petronas. This will also open up more opportunities for local companies to be involved in the industry.”
Describing it as a historic milestone for the Gabungan Rakyat Sabah (GRS) government, Hajiji announced the incorporation of the state’s wholly-owned oil and gas company – SMJ Petroleum Sdn Bhd.
“The CCA is perhaps the most important document after June 16, 1976, when the oil cash payment (royalty) was agreed upon, signed between Sabah and Petronas,” he said in a statement here.
“The signing of the CCA today indeed marks a new era in Sabah’s oil and gas industry.
“So, I am happy to announce the setting up of SMJ Petroleum which will spearhead Sabah’s commercial venture in the oil and gas industry as well as coordinate existing state GLCs in ensuring all terms and conditions in the CCA are implemented successfully for the benefit of the state and people,” Hajiji said.
He said the CCA would allow Sabah to get better “revenue sharing participation” and a bigger say in oil and gas-related matters through a commercial consultative framework with Petronas, while at the same time ensuring Sabah could hold on to its legal rights.
Hajiji also said he would be heading the annual strategic dialogue (ASD) with Bakke.
“ASD is the highest discussion platform that will ensure Sabah fully benefits from the CCA in the future,” he said.
He said Petronas was committed to paying cash on oil royalty and state sales taxes as part of the greater revenue-sharing agreement.
“It is important to mention here that the CCA will preserve the state’s legal rights by providing total protection in the interest of the state,” Hajiji said. - FMT


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