KOTA KINABALU: Sabah expects to see about RM2.45 billion in annual revenue from oil and gas royalties and the state sales and service tax (SST), said Chief Minister Datuk Seri Hajiji Noor.
He said the inclusion of petrochemicals in the SST Enactment added RM10 million to the Sabah SST collection in August.
The collection was contributed by Sabah Ammonia Urea (Samur) operations at the Sipitang Oil and Gas Industrial Park.
Hibiscus Petroleum, which previously refused to pay the tax, has cleared all payments.
"We hope to develop and expand the oil and gas business, with all oil and gas companies in an atmosphere of harmonious partnership," he said in a speech read by state Local Government and Housing Minister Datuk Seri Masidi Manjun.
Masidi was representing the chief minister in a signing ceremony between Petronas and state government-linked company Sabah Energy Corporation Sdn Bhd (SEC) at the Sabah International Convention Centre today.
In the speech, Hajiji confirmed that the state government's proposal to establish a branch of Universiti Teknologi Petronas (UTP) has been successful, with the signing of a memorandum of understanding between UTP and University College Sabah Foundation.
He said this would boost the development of Sabah's human capital and support the oil and gas sector.
The ceremony also saw the signing of various agreements that make SEC the largest supplier and transporter of domestic natural gas in Sabah and one of the main players in the oil and gas industry in Malaysia.
He said with the acquisition of a Petronas gas contract in Sabah, SEC would be involved in moving more than 250MMscfd (million standard cubic feet per day) of natural gas to existing international piping products.
By acquiring a natural gas business owned by Petronas, SEC will supply 86 per cent of the fuel for power generation purposes in the state.
The company will take over the role of increasing the use of natural gas in the manufacturing industry and energy use through natural gas pipelines starting Jan 1.