PM: Opposition will impede Petronas growth
(NST) – ILL-CONCEIVED PLANS: They will jeopardise its ability to look for more reserves
KUALA LUMPUR: THE opposition’s promises to reduce fuel prices, increase oil royalty and set up a parliamentary committee to monitor Petronas would jeopardise the company’s ability to steer forward and enhance its dynamic pace of development.
Prime Minister Datuk Seri Najib Razak said what was contained in the opposition’s manifesto, if implemented, would impede the national oil and gas company’s ability to source for new reserves.
He said such ill-conceived promises to bring down the country’s fuel prices, which were already among the lowest in the world, would eventually cut into Petronas’ funds for further expansion.
Najib said the promise to increase oil royalty from five per cent to 20 per cent could spell economic disaster not only for the company, but also the country.
“Imagine the top five to 20 per cent (of Petronas funds) goes (for royalty). Not only will the Treasury be affected, but Petronas’ ability to reinvest the amount it requires to look for more reserves and maintain existing ones will be in very, very serious jeopardy,” Najib told 4,000 Petronas employees at a town hall session at the Kuala Lumpur Convention Centre here yesterday.
Najib explained how the government was able to channel more funds to oil-producing states.
“Petronas would not be the same organisation it is today if from Day One, we gave 20 per cent oil royalty. When the money goes to government coffers, the government spends more money, through its system, on states producing oil. So it is a win-win situation.
“We make sure Petronas has enough money for reinvestment while at the same time, there is enough money for the government. The money goes for developing operating expenditure in Sabah, Sarawak and Terengganu.”
Najib also chided the opposition’s intention of scrapping the Refinery and Petrochemical Integrated Development (Rapid) in Pengerang, Johor.
Najib, stating Petronas’ relationship to the government was like son and father, said the government trusted Petronas’ board of trustees to make decisions on company expansion matters.
