As petrol pump prices rise steadily (another increase in RON 97 price has just been reported), here’s a less well known trend: Malaysian oil production has been gradually falling since peaking in 2004.
This graph should be of concern to all Malaysians. Notice the production-consumption gap narrowing.
Graphic credit: http://www.eia.doe.gov
That’s why they are dishing out contracts for ‘enhanced’ oil recovery. Continue reading »
Former premier Abdullah Badawi has denied giving up the oil rights in Blocks L and M – but his response raises more questions.
In remarks published by the Malaysian Insider, he said Blocks L and Block M would be jointly developed by Malaysia and Brunei over 40 years. He added:
The financial and operational modalities for giving effect to this arrangement will be further discussed by the two sides. This means that in so far as the oil and gas resources are concerned, the agreement is not a loss for Malaysia…
Refuting a government ad blitz, Tengku Razaleigh Hamzah insists that oil-producing states are entitled to a 5 per cent payment on all oil extracted, whether onshore or offshore.
There is no such thing as a 3-nautical mile limit, he writes in his latest blog entry.
The Information Ministry’s full page advertisements in the major Malay newspapers had argued that Kelantan has no right to oil payments under the Petroleum Development Act because its oil resources fall outside the 3-nautical mile limit that delimits state versus federal jurisdictions.
Razaleigh counters:
The advertisement fails to point out that almost all the oil found in Malaysia is located more than 3 nautical miles offshore, and Petronas has nevertheless been making oil payments to the states. By the argument deployed in the advertisement, Terengganu, Sabah and Sarawak too are not entitled to the “cash payments” of 5% of profit oil (commonly and a little inaccurately referred to as “oil royalties”). Everything is at the arbitrary behest of the Federal Government.
