Archive for category Oil
5 transformation measures for Malaysia
Posted by Kit in Budget Debate, Corruption, Najib Razak, Oil on Monday, 17 October 2011
Proposals which would have given meaning to 2012 Budget as a National Transformation Policy
The theme of of the 2012 Budget is: “National Transformation Policy: Welfare for the Rakyat, Wellbeing of the Nation.”
It is supposed to be a very important budget as it is open up a new decade of National Transformation Policy or DTN effective from 2011 to 2020 when Malaysia is to become developed and high-income nation.
The National Transformation Policy is the final lap of development policies starting with the New Economic Policy 1971-1990, National Development Policy 1991-2000 and the national Vision Policy 2001-2010.
But is there “transformational” in the 2012 Budget which is to usher in a decade of transformation in Malaysia? I can’t find anything transformational or even visionary at all. Read the rest of this entry »
Johor oil terminal in rescue talks with investor, says contractor
Posted by Kit in Good Governance, Johore, Oil on Saturday, 18 June 2011
By Shannon Teoh
The Malaysian Insider
Jun 17, 2011
KUALA LUMPUR, June 17 — Asia Petroleum Hub (APH) is in talks with an investor to fully finance its troubled multibillion-dollar oil terminal in Johor, one of its main contractors said today.
Muhibbah Engineering Bhd said in a filing to Bursa Malaysia that APH “has identified an investor and was in negotiations with the investor to fully finance the completion of the APH hub project, including making due payments to contractors.”
Singapore Business Times (BT) had reported on Wednesday that financier CIMB Bank had placed APH under receivership over a RM1.4 billion three-year bridge loan granted in 2006.
APH drew down RM840 million for project costs but executives told BT that costs had escalated and APH was looking for investors for a further RM2 billion in new financing. Read the rest of this entry »
Guan Eng: royal commission on IPPs, PPAs
Malaysiakini
Jun 12, 11
DAP secretary-general Lim Guan Eng has challenged the BN-led foreign government to set up a royal commission of inquiry into the issue of independent power producers and the related matter of power purchase agreements (PPA).
In this way, all PPAs and other PPAs would be disclosed and it could be determined once and for all whether the government has been equitable in its energy subsidy cuts for end consumers while maintaining lopsided arrangements with the IPPs that supply power to utility firm TNB, said Lim.
Lim, who is also Penang chief minister, was echoing an earlier statement by Umno stalwart Tengku Razaleigh Hamzah that an RCI should be set up to review TNB’s contracts with the 26 IPPs currently producing about 60 percent of the TNB’s energy supply.
“The RCI would determine how severely the lopsided deals are burdening consumers with the rise in electricity tariffs and introduce measures to either reduce or remove this huge financial burden on the people,” said Lim in a statement today. Read the rest of this entry »
DAP: Opposition pressure forced Putrajaya to postpone subsidy cuts
By Clara Chooi | May 26, 2011
The Malaysian Insider
KUALA LUMPUR, May 26 — The DAP triumphed today in Putrajaya’s postponement of fuel and gas subsidy cuts, claiming it was largely due to opposition pressure that forced the government to back down.
It however warned that the celebration would likely be short-lived, predicting that the cuts would be imposed after snap elections.
Read the rest of this entry »
IPPs: A case of the poor subsiding the rich
Malaysiakini Your Say | May 26, 11
‘Why is it that one minister called it ‘subsidy’ but another minister said it is not. This is ridiculous BN ways at work.’
Chin’s ‘savings, not subsidy’ remark shocks DAP
Onyourtoes: I think both Penang Chief Minister Lim Guan Eng and Energy, Green Technology and Water Minister Peter Chin are missing the fundamental issues on IPPs (independent power producers):
Read the rest of this entry »
Minister: Fuel prices to stay, for now
By Kuek Ser Kuang Keng | May 25, 11
Malaysiakini
The government will maintain petrol, diesel and liquified petroluem gas (LPG) prices for now, said Domestic Trade, Co-operatives and Consumerism Minister Ismail Sabri.
This was decided by cabinet earlier this morning, said Ismail (left) during a press conference at about 3.45pm today.
Read the rest of this entry »
Across the Causeway, pump prices dip
The Malaysian Insider | May 24, 2011
SINGAPORE, May 24 — Pump prices for petrol and diesel fell for the second time in as many weeks as simmering worries about the global economy weighed on oil prices.
US oil giant Caltex made the first move when it lowered pump prices by three cents a litre across the board at 6pm yesterday, the Straits Times daily reported today.
The island republic’s Singapore Petroleum Co (SPC) matched the reduction at 7pm, followed by Anglo-Dutch giant Shell at 9pm.
Read the rest of this entry »
Two parliamentary questions on Najib’s three strategic initiatives to transform Malaysia but which have run aground
In the forthcoming parliamentary meeting beginning on Monday, I have given notice to pose two questions to the Prime Minister, Datuk Seri Najib Razak on his three strategic initiatives to transform Malaysia but which have run aground because of strong opposition mostly from Umno and its outsourced organizations like Perkasa.
These three initiatives of Najib are his three strategic pillars which make up his roadmap to achieving Vision 2020 – an high-income advanced nation with inclusiveness and sustainability by 2020:
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1Malaysia, People First, Performance Now;
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Government Transformation Programme; and
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New Economic Model.
My two questions are to ask the Prime Minister:
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how many Ministers in his Cabinet, naming them, regard himself/herself as Malaysian first, race second in keeping with 1Malaysia policy; and
DAP fully supports PAS proposal for a suit to be filed against the federal government for ceding away the oil-rich offshore Blocks L and M in South China Sea
DAP fully supports the PAS proposal for a suit to be filed against the Federal Government for ceding away the oil-rich offshore Blocks L and M in South China Sea to protect the rights of future generations of Sarawakians, Sabahans and Malaysians.
Kelantan state councillor Husam Musa yesterday proposed a legal suit against the federal government for ceding away the oil-rich maritime boundary areas to Brunei.
DAP endorses Husam’s demands and calls on the Prime Minister to issue a White Paper pertaining to all the following issues:
• Reveal to the public all communiques between Putrajaya, Brunei, Sabah, Sarawak and national oil company Petronas pursuant to the ceding of the boundary areas.
• Report all decisions made by the cabinet about the matter.
• Convene a royal commission of inquiry to investigate the issue. Read the rest of this entry »
Oil sovereignty: Why Sarawak not consulted?
Malaysia Mirror | Wednesday, 05 May 2010
KUCHING – The question of sovereignty concerning the state of Sarawak and the oil-rich Blocks L and M, which were signed away to Brunei, was raised by DAP state assemblyman for Bukit Assek Wong Ho Leng on Tuesday.
In a media statement, Wong, who is DAP Sarawak chairperson, questioned the role of the Sarawak government on this issue and why the Federal government did not consult the state government.
Wong called for a detailed explanation from the state government as to whether it was aware of such “trades” involving Limbang and Blocks L and M.
He said the state government needs to clarify immediately whether it has neglected the interest of Sarawakians by giving up the jurisdiction on the two disputed oil-rich blocks to the Federal government.
Read the rest of this entry »
Call on Najib to release a full chronological order on the events resulting in the ceding of Malaysian sovereignty to Blocks L and M to Brunei and the position of Brunei’s territorial claim to Limbang
Posted by Kit in Abdullah Ahmad Badawi, Foreign, Najib Razak, Oil on Monday, 3 May 2010
The statements by Wisma Putra, Petronas, the Prime Minister Dauk Seri Najib Razak and former Prime Minister Tun Abdullah Ahmad Badawi all have one common purpose – to avoid answering two important questions:
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When and why Malaysia ceded away Malaysian sovereignty to two oil and gas-rich offshore areas in South China Sea, namely Block L and Block M, in favour of Brunei; and
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Whether and if so, when Brunei had surrendered its territorial claim of sovereignty to Limbang and recognized full Malaysian sovereignty instead.
Although Wisma Putra, Petronas, Najib and Abdullah know fully well that their statements would be scrutinized for answers to these two most important questions, all their verbiage have one common thrust to avoid answer to these two questions.
This can only raise suspicions to crisis point.
Read the rest of this entry »
Abdullah should explain whether he had signed off US$100 billion (RM320 billion) worth of oil rights to resolve Brunei’s claims to Limbang a month before he stepped down as Prime Minister and why
Posted by Kit in Abdullah Ahmad Badawi, Mahathir, Najib Razak, Oil on Friday, 30 April 2010
Former Prime Minister Tun Abdullah should explain whether he had signed off US$100 billion (RM320 billion) worth of oil rights to resolve Brunei’s claims to Limbang a month before he stepped down as Prime Minister in March last year and why.
The disclosure by former Prime Minister, Tun Mahathir that there had been such a deal is most shocking and even outrageous, demonstrating how gravely good governance had deteriorated after Merdeka in 1957, as this is something Abdullah’s predecessors as Prime Ministers, Tunku Abdul Rahman, Tun Razak, Tun Hussein and even Tun Mahathir himself, would not have done without proper consent of Cabinet, Parliament and the Malaysian people.
Malaysians would have continued to be kept in the dark of this deal if not for Mahathir’s latest blog entry “Malaysia’s Generosity” yesterday where he disclosed that Malaysia had lost a substantial oil producing offshore area in the South China Sea, namely Block L and Block M. Read the rest of this entry »
Lim to Najib: Explain ‘massive’ oil find
Posted by Kit in Najib Razak, Oil, Sabah on Monday, 22 March 2010
KOTA KINABALU: DAP Parliamentary leader Lim Kit Siang wants the government to disclose full details of an alleged new oilfield discovered by national oil company Petronas.
“I call on the PM Datuk Seri Najib (Razak) to make a ministerial statement in parliament tomorrow (today) on this very important subject, the biggest oil find in the Malaysian history and the role of Petronas because Petronas is now contributing about 42 per cent to the country’s revenue,” he told reporters here yesterday.
Lim was commenting on Gua Musang MP Tengku Razaleigh Hamzah’s statement on Saturday that he had been told of the discovery of a new oilfield by Petronas, which could be the biggest oilfield in the world.
“I have heard about this but up to now the government has not made any announcement. I think this should not be kept under-wraps.
“Malaysians have a right to know as it will mean that the future of Malaysia will be cast in a different light.
Read the rest of this entry »
Why have the sons of the second and third Prime Ministers turned their backs on their father’s joint legacy on 5% oil royalty to the states?
Posted by Kit in Mahathir, Najib Razak, Oil, Razaleigh Hamzah, UMNO on Wednesday, 3 March 2010
End-game to the silencing of Umno veteran leader Tengku Razaleigh Hamzah or his expulsion from Umno.
This is the import and intent of the gag order announced by Umno vice president Datuk Seri Hishammuddin Hussein on Umno members on the Kelantan oil royalty issue which could affect the party’s image.
It is no more a question of who and what is historically right or wrong but who has the present power to impose his views on the country at the moment, right or wrong.
What the second and third Prime Ministers, Tun Razak and Tun Hussein Onn, intended some 35 years ago, as ordering Razaleigh as the first Petronas Chairman “to design the Petroleum Development Act in such a way that the Malay heartland states of Kelantan, Terengganu, Johor and especially his beloved Pahang, would benefit directly from offshore oil beyond 3 nautical miles through the mechanism of 5 per cent cash payments made directly to the state consolidated fund” (Razaleigh’s statement) do not matter today.
Even Razak’s categorical and unequivocal commitment in Parliament on Nov. 12, 1975 in reply to my parliamentary question that “Under the agreement, each state will receive 5 per cent of the value of petroleum found and extracted from each of the states, whether onshore or offshore, that is sold by Petronas or agencies or contractors” is now regarded as utterly of no consequence or value.
Read the rest of this entry »
Twitter conversation – LKS and Kuli
Posted by Kit in nation building, Oil, Parliament, Razaleigh Hamzah, Twitter on Tuesday, 23 February 2010
limkitsiang: Oil royalty – Najib is Razak’s son or Mahathir’s heir? http://bit.ly/93SgAj
04:12 PM
razaleigh: My fellow dinosaur w/ a memory of a better day RT @limkitsiang: Najib: Razak’s son or Mahathir’s heir? http://bit.ly/93SgAj
04:22 PM
limkitsiang: @razaleigh shld not have 2depend solely on memory Shld have documents somewhere Petronas etc though mayb OSA Must wait 4regime change 1st?
04:30 PM
razaleigh: Why don’t I put the PDA up on my blog, YB RT @limkitsiang: @razaleigh shld not have 2depend solely on memory
04:34 PM
limkitsiang: @razaleigh good idea but PDA makes no mention of “offshore”. Aren’t there some documents/records somewhere referring to it?
04:42 PM
Read the rest of this entry »
Oil royalty – Najib is Razak’s son or Mahathir’s heir?
Posted by Kit in Najib Razak, Oil on Tuesday, 23 February 2010
I agree with veteran Umno leader Tengku Razaleigh Hamzah that the federal government’s full-page advertisements in Malay weeklies on the oil royalty controversy is an insult to the intelligence of all Malaysians.
The full-page advertisements contain an important omission – the reply 35 years ago in Parliament by the then Prime Minister, Tun Razak to my question whether all states in Peninsular Malaysia, Sarawak and Sabah had signed agreements with Petronas for oil exploration along the coastline and what were the joint profits for the state.
As recorded in the Parliament Hansard of November 12, 1975, this was Tun Razak’s reply: “All states in Malaysia, except Sabah and Sarawak, have signed the agreement with Petronas under the Petroleum Development Act 1974. I have been informed that Selangor had agreed to sign the agreement.
Read the rest of this entry »
Rejected: Motion on lower Petronas profits
Posted by Kit in Oil, Parliament on Monday, 14 December 2009
Rahmah Ghazali | Dec 14, 09 4:12pm | Malaysiakini
Opposition Leader Anwar Ibrahim failed in his bid today to move a motion in the Dewan Rakyat to debate the significant dip in the profits of national oil and gas company Petronas.
Deputy speaker Wan Junaidi Jaafar decided that the matter is not sufficiently urgent to be debated, although it is an issue of public importance.
Unhappy with the outcome, Anwar (PKR-Permatang Pauh) pointed out that it is important for the House to debate an issue which will have a huge impact on the economy.
Petronas’ net profit before tax for the first half of the financial year was RM31.2 billion, compared to RM63.3 billion in the same period last year, he said.
Read the rest of this entry »
Nazri insists Kelantan not entitled to oil royalty
Posted by Kit in Kelantan, Oil, Parliament on Tuesday, 17 November 2009
By Syed Jaymal Zahiid | The Malaysian Insider
KUALA LUMPUR, Nov 17 – The Parliament was in uproar this afternoon when Datuk Seri Nazri Aziz poured oil on the fire raging over the Kelantan oil royalty issue by insisting that the PAS-governed state has no legal right to demand the payment.
While winding up the Supply Bill debate, the Minister in the Prime Minister’s Department explained that former prime minister Tun Abdul Razak Hussein had not specifically used the term “royalty” when debating the Petroleum Development Bill in 1974 that established Petronas and agreements with the various oil-producing states to receive 5 per cent of the oil revenues.
“The agreement was made as a promise so that future administrations will respect it. It is a promise but not a right and his son, Prime Minister Datuk Seri Najib Razak, is respecting this promise by giving goodwill payment to Kelantan,” Nazri told the Dewan Rakyat.
Read the rest of this entry »
Who is lying – father (2nd PM Tun Razak) or son (6th PM Najib Razak)?
Posted by Kit in Kelantan, Najib Razak, Oil, Parliament on Monday, 16 November 2009
I asked in Parliament today – “Who is lying – father (second Prime Minister Tun Razak) or son (sixth Prime Minister Datuk Seri Najib Razak”?
This was during the committee stage debate on the Prime Minister’s Department on the 2010 budget in Parliament.
On 3rd November, while replying during question time, Najib told Parliament that from a legal aspect, states such as Kelantan and Trengganu are not entitled to oil royalties for petroleum produced “off-shore” – as they are only entitled to oil royalties if the petroleum is drilled from its water.
Najib said:
“The offshore oil operations in their waters are defined as an area not more than three nautical miles, which is measured starting from the low watermark or the shoreline of the state.
Read the rest of this entry »
Malaysian Economic Democratisation – Extract 5
(Extracts from DAP Alternative Budget 2010 launched on 7th October 2009)
9. Thrust II: Rakyat First – Restructuring and Reallocation
9.2 Managing Oil Wealth
Over-reliance on Oil and Gas
Malaysia is blessed with abundant natural resources. In particular, we are thankful that the country is rich in oil and gas, which created Malaysia’s sole representative in the Fortune 500, Petroliam Nasional Berhad (PETRONAS). Since the incorporation of PETRONAS Group 35 years ago, the Group has paid RM471 billion to the Government, in addition to bearing a cumulative gas subsidy of RM97 billion.
In the most recent financial year ending March 2009, PETRONAS achieved profit before tax of RM89.1 billion amidst the challenging economic backdrop. Of greatest importance was the fact that PETRONAS contributed RM61.6 billion to our national coffers in taxes, royalties, dividends and export duties last year. Contribution from PETRONAS Group alone was budgeted to make up some 46% of the Federal Government revenue for 2008. This represents a steep increase from approximately 20% in 2004. The heavier reliance on oil and gas industry for Malaysia over the years signals an alarming trend.
Despite the fact that the total Malaysia hydrocarbon reserves has increased marginally from 20.13 billion barrels of oil equivalent (boe) at January 2008 to 20.18 billion boe at January 2009, and the reserves replacement ratio (RRR) has improved from 0.9 times to 1.1 times during the same period, our reserves will inevitably run dry at some point. During an interview with Bernama in June 2008, the president and chief executive officer of PETRONAS Group, Tan Sri Hassan Marican said that “we will continue to produce for another 20 years or so.” In more immediate terms, “Malaysia will become a net importer when its domestic consumption, growing at six percent per annum, is expected to overtake national production in 2011.”
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