Guyana’s Success Sparks Debate: Why Can’t Sarawak Receive Fair Oil Returns?
KUCHING: Batu Kitang assemblyman Datuk Lo Khere Chiang has questioned the fairness of Sarawak’s oil and gas (O&G) revenue sharing, drawing parallels to Guyana’s economic transformation after regaining control of its oil resources.
Lo refuted claims made in a Free Malaysia Today article titled “Sarawak and Malaysia Can’t Afford Escalating O&G Disputes”, calling its arguments flawed. He highlighted how Guyana, once struggling, became the world’s fastest-growing economy after oil discoveries in 2015. Partnering with ExxonMobil, Guyana secured 40% of its oil wealth, resulting in a remarkable GDP of USD 23 billion within nine years.
“In contrast, Sarawak receives only 5% of its oil wealth, despite contributing RM80 billion annually to Malaysia’s economy over the past 60 years,” Lo said in a statement. He argued that Sarawak deserves a better deal, comparable to Guyana or Brunei, where local governments receive substantial returns from global corporations.
Lo dismissed concerns about capital expenditure burdens falling on Petroleum Sarawak Berhad (Petros) if it assumes a greater role in managing Sarawak’s O&G resources. “It’s absurd to expect Petros to shoulder costs incurred by Petronas while Sarawak continues to receive a mere 5%,” he said, likening it to hosting a guest who consumes everything and demands compensation for their expenses.
He praised Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg’s efforts to reclaim Sarawak’s O&G rights through constitutional means, urging Sarawakians to rally behind the state government. “Petros must persist in fighting for Sarawak’s rightful share under the Malaysia Agreement 1963 and other legal frameworks. The state’s sovereignty over its resources is indisputable,” Lo stressed.
Lo also pointed out Malaysia’s external debt of RM1.3 trillion despite Sarawak’s wealth contribution, further highlighting the need for equity. He called on Petronas to emulate ExxonMobil’s model in Guyana and ensure Sarawak benefits fairly from its own resources.
