Archive for category Oil
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.”
Read the rest of this entry »
Najib – act on Nik Aziz’s initiative and restore proper Federal-Kelantan State government relations starting with RM1 billion oil royalties payment to Kelantan
The Prime Minister, Datuk Seri Najib Razak should act on the initiative of the Kelantan Mentri Besar Datuk Nik Abdul Aziz Nik Mat’s initiative and restore proper and just Federal-Kelantan state government relations based on justice and fair play to the people of Kelantan uninfluenced by party differences between the Federal and state governments – and in line with Najib’s 1Malaysia motto.
Two days ago, the Kelantan Mentri Besar and the Minister for International Trade and Industry and Kelantan Umno liaison chief, Datuk Mustapha Mohamad jointly kicked off a programme to promote tourism in Kelantan. Read the rest of this entry »
Call for public inquiry on how the half-a-trillion ringgit contributed by Petronas to government past 33 years and the RM15.2 billion ringgit royalty to Terengganu from 2000-2009 have been properly spent and accounted for
Posted by Kit in Good Governance, Oil on Saturday, 4 July 2009
Former Prime Minister, Tun Dr. Mahathir has raised a very pertinent question – where have the close to half-a-trillion ringgit, to be exact RM426.6 billion, of petro-ringgit from Petronas to the government in the past 33 years since 1976 gone?
Since 1976, payments by Petronas to the Federal Government are as follows:
| FY | Payment (in billion) |
| 1976 | 0.3 |
| 1977 | 0.7 |
| 1978 | 0.7 |
| 1979 | 0.7 |
Najib should present ministerial statement in Parliament on Monday on various current Petronas issues
Posted by Kit in Good Governance, Najib Razak, Oil, Parliament on Friday, 26 June 2009
The Prime Minister, Datuk Seri Najib Razak should present a ministerial statement in Parliament on Monday on various current Petronas issues – a new CEO, his insistence to appoint defaulter Omar Mustapha as Petronas director, declining Petronas profits and most important of all, a new regime of Petronas accountability to Parliament.
Recently, what is making waves in Petronas and well-informed local circles and reported internationally, though completely swept under the carpet by the local mainstream media, is the repeated attempts by the Prime Minister, Datuk Seri Najib Razak to force the appointment of his aide, Omar Mustapha as director of Petronas.
The Singapore Straits Times has reported that the Petronas Board of Directors has rebuffed Najib’s attempt to foist the appointment of Omar for the second time this Wednesday, as the Board was directed by Najib to reconsider its decision last month rejecting Omar’s appointment.
The reason for the Petronas Board’s rejection of Omar as director is that Omar had defaulted on his scholarship loan agreement with Petronas two decades earlier. Omar did not complete the required number of years of service with the national oil corporation or a related government agency as stipulated in his scholarship agreement. Petronas also initiated legal proceedings against Omar in 2001.
Read the rest of this entry »
LGE on IPP windfalls & Khairy
Posted by Kit in Good Governance, Oil, Parliament on Wednesday, 22 October 2008
When will petrol pump price revert to RM1.92?
It was only last week that the Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said that the price of petrol would revert to the old price of RM1.92 a litre which motorists had enjoyed before the 41% hike in June if the world crude oil price continued to dip to below US$72 a barrel.
At the time (October 10), the crude oil price was around US$88 a barrel.
Over the weekend, the world oil prices closed at a new 14-month low beneath US$70 a barrel, bringing its price to less than half its July record high – dipping to as low as US$68.57 a barrel.
Why hasn’t the petrol pump price reverted back to RM1.92?
Will this be announced tomorrow when Deputy Prime Minister and Finance Minister, Datuk Seri Najib Razak release his economic stabilisation plan to prepare Malaysia to face the world’s worst economic crisis since the Great Depression of the 1930s? Read the rest of this entry »
World crude oil below US$78 a barrel – Najib should “burn midnight oil” to present lowered pricing for petrol on Monday
Posted by Kit in Najib Razak, Oil, OSA on Saturday, 11 October 2008
For the past month, two questions have obsessed Malaysians.
The first has been answered, viz: whether Datuk Seri Abdullah Ahmad Badawi will bow down to pressures from inside Umno for a quick exit as Prime Minister by announcing that he would not defend the post of Umno President in the forthcoming Umno General Assembly.
The second question, still awaiting answer, is whether the government could respond nimbly to the rapid fall in world crude prices to undo its unconscionable 41% hike in fuel prices in June which had kicked off a relentless inflationary spiral hitting a 27-year high.
When the price of petrol in Malaysia was hiked by 41% by 78 sen from RM1.92 to RM2.70 a litre, the price of world crude oil was around US$140 per barrel.
World oil prices have plummeted to a one-year low below US$78 a barrel, but the price of petrol is RM2.45 or reduced by a mere 25 sen in two reductions.
This is clearly unacceptable and the situation is not made any more palatable with the statement yesterday by the Minister for Domestic Trade and Consumers Affairs Datuk Seri Shahrir Samad of the possibility that the price of petrol reverting to the old price of RM1.92 a litre if world crude oil price continues to dip below US$72 per barrel. Read the rest of this entry »
Oil policy – change it to encourage economic growth
Posted by Kit in Dr. Chen Man Hin, Oil on Friday, 15 August 2008
by Dr. Chen Man Hin
The present oil policy to set gasoline and diesel prices at international market prices has caused a sharp decline of the economy causing hardships to the people.
This is the current policy adopted in developed economies which do not advocate subsidised oil for the people. Their experts contend that subsidised oil would distort the market, and people would not be encouraged to conserve the use of oil. In the end there would be a disastrous impact on the economy and on the environment.
The Prime Minister, Datuk Seri Abdullah Ahmad Badawi, who is also Minister of Finance slavishly followed the concept practised in developed countries. It has proved to be disastrous for Malaysia.
Because of the high pump prices of gasoline and diesel, the economy has slowed down considerably. The wheels of industry are not humming, and more people are laid off. Read the rest of this entry »
Pump prices of oil should be reduced to old price now
Posted by Kit in Dr. Chen Man Hin, Oil on Friday, 1 August 2008
by Dr. Chen Man Hin
AS AN OIL PRODUCER, MALAYSIA MUST USE ITS OIL INCOME TO BOOST THE ECONOMY AND RELIEVE THE SUFFERING OF THE PEOPLE. THE CABINET MUST BRING DOWN PUMP PRICES IMMEDIATELY.
The cabinet should not dither any more on the critical issue of bringing down pump prices. It must NOW act to bring down the price of pump oil immediately.
The economy has slowed down considerably since the price of pump oil was increased by 42% from RM 1.98 to RM2.70 per litre. All sectors of the economy have been affected, The manufacturing industries, transportation, tourism, hotels, restaurants, shops and even markets have been affected bady because of the high increase of oil by government.
The construction industry is badly hit because of the rapid and huge price increases for steel, concrete and other building materials. Many contractors have surrended back their contracts to govenment and developers. Read the rest of this entry »
Kelana Jaya Stadium anti-fuel price protest
Kelana Jaya Stadium anti-fuel price protest
Date: 6.7.08 (Sunday)
Time: 10am – 12am
Venue: Kelana Jaya Stadium, Selangor
From Malaysiakini
Kelana Jaya rally: 10,000 people at noon
Malaysiakini Team | Jul 6, 08 10:08amThere is a carnival sort of atmosphere at the Kelana Jaya stadium this morning at the day-long anti-fuel hike rally.
People started trickling into the 50,000 capacity stadium since early morning, to be greeted by vendors selling Pakatan Rakyat party mementos, T-shirts, cassettes and posters. Read the rest of this entry »
A new oil policy – reform Petronas
Posted by Kit in Dr. Chen Man Hin, Oil on Monday, 16 June 2008
by Dr. Chen Man Hin
The latest jump in pump pricing by 42% has caused an upheaval in the economy and much unhappiness among motorists and the people. businesses are stalling, and there is undertainty about the future. the sudden severe rise has caused a social and economic earthquake.
The shocking increase was unnecesary, and here are the reasons why it was a bad mistake. Read the rest of this entry »
Petrol price hike protest
– a bystander’s report of the petrol price hike protest in Kuala Lumpur today
They came not in ones or twos, not in tens or hundreds, but by the thousands, desperately seeking a solution for inordinately huge fuel hike just ordinary Malaysians, who have no solution on how to cope with the current inflation.
They were young and old, male and female, participants who came from out station. We salute them for their fortitude, for the sacrifice, for their efforts. Shame on us KLites, I stand humbled by their initiative and gumption to come over from Kelantan and Perak.
Fellow KLites they are walking right now for you and me, from Masjid Jamek, Kampung Baru after the Friday Prayers, they held banners up. I could be mistaken, but I think Nik Nazmi, Seri Setia State Assemblyman was at the mike for a while. Their numbers could be two to three thousand and more. Unit Amal guys showed their professionalism and efficiency in marshalling the crowds and the public address system. Read the rest of this entry »
The Curse Of Oil
Letters
by Toh May Fook
Thomas Freidman deliberated on the impact of the wealth that comes with the endowment of oil, on various oil-rich nations around the world and concluded that in many of these “less developed nations,” oil is actually a curse rather than a blessing. It actually promotes indulgence of every sorts, misallocation of resources, complacency, poor governance, abuse of executive powers, corruptions and all sorts of other social and political ills.
Back in our country, revenue from Petronas has contributed to 33% of the government’s annual budget, so we were told, but the accounts of Petronas is not made public and that leads to all sorts of negative speculations from concerned citizen. It defies logic that a national institution as important as Petronas which has contributed so much to the nation does not want to be transparent and gain even more respect from all fellow Malaysians. Unless as they say, benar benar ada udang disebalik batu.
The price of pump price of fuel has risen to a point that threatens the livelihood of most ordinary Rakyat, right thinking citizen can not accept the logic offered by the government and this can easily lead to political instability. As the issue has reached crisis proportion, it is ridiculous that the government still does not deem it necessary to open up the accounts of Petronas together with a comprehensive public review on the state of affairs in Petronas. Read the rest of this entry »
Unconscionable oil price hikes – Abdullah govt would have fallen if in South Korea
(Speech at the DAP Public Ceramah/Consultation held at Dewan Sri Mentaloon, Residen Rasmi Menteri Besar Kedah on Wednesday, 11th June 2008)
The Abdullah government would have fallen because of the 41% to 63% unconscionable and brutal oil price hikes if he is in South Korea, which saw the new South Korean President’s popularity plunging in less than four months from a presidential victory with the biggest margin in the nation’s history to a support rate of under 20 per cent and his entire Cabinet offering to resign – after a month of mammoth demonstrations against the planned resumption of US beef imports.
Malaysians are still puzzled as to the reckless and sudden manner in which the Prime Minister, Datuk Seri Abdullah Ahmad Badawi announced the unconscionably brutal petrol and diesel price hikes, after a Cabinet Minister had given the assurance that no oil price increases were on the cards until August.
The failure to announce a holistic package of mitigation measures to cushion the most vulnerable sectors from the sharp impact of the drastic oil price increases until five days later strengthened the impression that the decision was driven more by political than economic considerations. Read the rest of this entry »
Why not slash entertainment allowances of Cabinet Ministers by 50%?
Posted by Kit in Good Governance, Oil on Tuesday, 10 June 2008
The first of many questions that come to the mind of Malaysians on the RM2 billion cost-cutting package announced by the Prime Minister, Datuk Seri Abdullah Ahmad Badawi is:
If the government can increase oil prices from 41 to 63 per cent, why can’t it slash the entertainment allowances of cabinet ministers and deputy ministers by 50% and not just a paltry 10%?
The question becomes all the more poignant when it is disclosed that the current entertainment allowances are RM18,865 for the prime minister, RM15,015 for the deputy prime minister, RM12,320 for ministers and RM6,000 for deputy ministers.
What about all the other allowances, including tips allowances which run into hundreds of ringgit a day, which ministers and deputy ministers are entitled to? Read the rest of this entry »
Minyak Oh Minyak…!
Letters
by Dr. ASM
Harga minyak kita jauh lebih murah jika dibandingkan dengan negara jiran. Kenaikan harga tak dapat dielakkan lagi. Rakyat digesa ubah cara hidup. Itulah antara kenyataan yang menguasai dada akhbar dimasa ini. Semua ini seolah-olah memperbodohkan rakyat Malaysia.
Harga minyak kita jauh lebih murah dari negara jiran, Singapura, Thailand dan juga beberapa negara lain. Jangan bandingkan harga kita dengan negara jiran yang bukannya pengeluar minyak. Bandingkanlah harga kita dengan negara pengeluar minyak lain (Iran(0.35), UAE (1.19), Arab Saudi (0.38), Venezuela (0.16), Mesir (1.03), Bahrain (0.87), Qatar (0.68) , Kuwait (0.67), Nigeria (0.32) dll). Jangan fikir rakyat Malaysia bodoh dan mudah diperdayakan dengan fakta dan perbandingan yang tidak tepat.
Rakyat digesa ubah cara hidup. Kita disuruh ubah, tapi pemimpin semuanya masih berkereta mewah. Kerajaan sepatutnya ubah cara berbelanja. Tangguhkan dulu projek mega. Tukar semua kereta mewah kepada Proton Perdana. Barulah cakap serupa bikin. Read the rest of this entry »
Protest at unconscionable oil price increases
Ipoh, Perak
- Venue : Perak Office of Ministry of Domestic Trade and Consumer Affairs
at Federal Building (opposite Dewan Bandaraya Ipoh ), Green Town, Ipoh - Date : Thursday, 5th June 2008
- Time : 11am
Kuala Lumpur
- Venue : Jalan Pasar, Pudu (indirectly opposite RHB and Am Bank)
- Date : Thursday, 5th June 2008
- Time : 11.30am
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