Tuesday, November 18, 2008

PKR wants neutral assessment on deposits

18 November, 2008 - Daily Express

Kota Kinabalu: Parti Keadilan Rakyat (PKR) Vice President Datuk Dr Jeffrey Kitingan has called for an independent oil and gas consultant to find out whether Sabah's gas deposits are really the least in the nation.

Describing the statement about Sabah's natural resources by Petronas President Tan Sri Hassan Marican as "highly questionable", Jeffrey suggested the former step down if the assessment by the consultant proves to be different from what he claimed.

"If it is the lowest and not viable then why the need to exploit and pipe it or even build a petrochecmical plant?

"Would Petronas just build something for nothing? Or is Marican not telling the truth? What I know from other sources is that Sabah's oil and gas deposits are substantial as those in Sarawak and Terengganu," he said in a statement, Monday.

Jeffrey also challenged Chief Minister Datuk Seri Musa Aman to reveal to the public the details of deals discussed with Petronas since 2006, pointing out this is an era of transparency.

"This is not a small matter as it involves a key national resource in Sabah É the people have a right to know.

"For example, even the so-called Floating Production Storage Offshore (FPSO) activities and contracts, which pay up to US Dollars 500,000 per day, are only undertaken by those in the know through whom you know basis.

"Who are the FPSO contractors? Are the Petronas managers also involved?

Why doesn't the Chief Minister get YS Shipping Dua, which has various licences to be involved?," he said, adding Yayasan Sabah should be given a lead role in implementing the project involving RM1.6 billion of taxpayers' money.

In a related matter, Jeffrey said if building a LNG facility in Sabah was not viable, then why is the Government, at the same time, going ahead with the gas pipeline to Bintulu and the petrochemical plant.

"Is the Federal Government giving false hopes to Tan Sri Bernard Dompok and Sabahans or can both the pipeline and petrochemical industry be implemented viably for the benefit of the State and the people?"

He said figures given by Petronas on its reserves and current production level do not indicate, in any way, the viability or otherwise of the oil and gas industry in Sabah.

"It seems Sabah is always at the losing end. We have oil but we only get five per cent royalty. We have gas but it is being piped out.

"We have an oil and gas industry but little participation in its downstream activities (and) we have substantial oil and gas reserves/deposits but are being told you only have very little.

"Yet, Petronas talks about big royalty revenue, where is the logic?

Parliament should demand for an independent consultant and get the facts right," Jeffrey said.

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