Datuk Patinggi Abang Johari Tun Openg

KUCHING: Sarawak has been successful in claiming its rights to oil and gas through the state sales tax (SST) on petroleum products of oil and gas exploration companies.

Chief Minister Datuk Patinggi Abang Johari Tun Openg said from the tax point of view, Sarawak has settled the issue with national oil and gas company Petroliam Nasional Berhad (Petronas).

“This was a rather complicated matter because the leaders, especially in Petronas believed that Sarawak does not have the authority to impose the SST.

“For me, we have the power to impose sales tax on resources produced in Sarawak under the constitution.

“When it was brought to court, the decision was in our favour. I see this matter more or less has been resolved from the standpoint of tax and Petronas,” he said during an exclusive interview with New Sarawak Tribune.

Abang Johari said he was satisfied on the outcome of the oil and gas issue which was also recognised by the federal government.

Earlier this month, the chief minister said Sarawak government expected to receive about RM3 billion in SST payments for last year after winning a recent court case against Petronas.

“Our calculation was based on a US$50 (RM207) per barrel of crude oil when computing the amount of SST, so we should get an estimated revenue of RM3 billion for 2019,” he said.

He added that the state government would also be receiving between RM600 million and RM700 million in oil and gas royalty from Petronas.

“With our 25 percent equity in LNG3 Plant in Bintulu, we will have a substantial amount of revenue from the oil and gas sector,” he said.