CMO: Sarawak govt has not dropped demand for 20 pct oil royalties

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The Chief Minister’s Office has called the previous article which stated that the government would drop its demands for more oil royalties “misleading” and “vexatious in intent”. File Photo

KUCHING: The Chief Minister’s Office has reiterated that it has not dropped its demand for oil royalties for Sarawak, despite an earlier news report by Reuters saying otherwise.

The report, which quoted state legal counsel Dato Sri JC Fong, had earlier stated that the state would drop its demands for more oil royalties from Petronas, and would instead pursue other avenues such as production-sharing.

“This office wishes to clarify that the Sarawak government has not dropped the demand and the current negotiation with the federal government is based on the demand,” the short statement read.

“The article is misleading and vexatious in intent.”

No other explanation or rebuttal to what was carried in the report by the international news organisation was offered in the statement.

The 20 per cent oil royalty for Sarawak has been a point of contention ever since it was promised by the current ruling Pakatan Harapan government in their election manifesto.

Recently, Prime Minister Tun Dr Mahathir Mohamad stated that giving the amount promised would end up making Petronas “no longer the international oil company that it was”.

“So we have to appeal to the Sabah and Sarawak governments that it is really not workable,” he was quoted as saying by national news agency Bernama.