We’ll seek further explanation on oil royalty: Abang Johari

Abang Johari is to get an explanation as royalty and profits are not the same. - Bernama Photo
Abang Johari is to get an explanation as royalty and profits are not the same. - Bernama Photo

KUCHING: Chief Minister Datuk Patinggi Abang Johari Tun Openg said the provision of royalty and profits based on oil production are two different things.

Hence, he said the government of Sarawak wished to seek further explanation from the federal government on the matter.     

"We will get an explanation because royalty and profits are not the same,” he told reporters briefly after chairing the 51st Sarawak United National Youth Organisation (Saberkas) here.

Abang Johari was asked to comment on the statement of Prime Minister Tun Dr Mahathir Mohamad on the 20 per cent royalty to petroleum producing states at the Dewan Rakyat sitting recently.

On Friday, Dr Mahathir clarified that the 20 per cent royalty would be made based on the total profits acquired by the petroleum producing states. - Bernama