Thursday, September 27, 2018

The Sarawak Dilemma - To Leave or to Stay in Malaysia


To Leave or to Stay in Malaysia

There are some Sarawakians who still think that staying in Malaysia is an option for Sarawak. Many, possibly the majority of Sarawakians, however have come to the conclusion that it is not. If a referendum were to be held today, most Sarawakians would undoubtedly vote to become an independent nation, most probably a Republic.

The colonial Malayans self-servingly consider this to be “treason” and “sedition”, even though there is absolutely nothing in the Malaysia Agreement 1963 (MA63) and the Federal Constitution that prohibits secession. After all they themselves forced Singapore to secede, without even consulting Sarawak or Sabah, when they could no longer tolerate Singapore’s resistance to their racist and opportunist agenda.

The Malayans have never been sincere, and since the very formation of Malaysia to this very day have treated Sarawak like a colony, in spite of their avowed intention otherwise and notwithstanding their present hollow and hypocritical pledges of greater autonomy and return of Sarawak’s rights under MA63.

Instead of Borneonising the State’s administration, they Malayanised it. They never bothered to appoint Sarawakians to any senior or important positions in the Federal government or civil service. Instead they found all kinds of ways and means, mostly unconstitutional and in breach of the Federal Constitution itself as well as the spirit if not the very letter of the Malaysia Agreement 1963 (MA63), to dictate to and control the Sarawak government and civil service through their policies, finance, taxation and development expenditure, to name a few.

The only Sarawakians they were happy to deal with and honour were those traitors who collaborated with them in subjugating Sarawak and its people to their will and in furthering their racist and piratical political agendas. The useless Rahman Ya’kub and Taib Mahmud were thus able to divide and rule Sarawak for their own and the Malayans’ benefit, a situation that is continued to this day by the even more useless Abang Johari.

The Malayans and their lackeys Rahman and Taib and precipitated a constitutional crisis through instigating the unconstitutional removal of the first Chief Minister of Sarawak, Stephen Kalong Ningkan, who to them was troublesome and unwilling to cooperate in their colonisation schemes. When the case was decided against them they conspired to create a false state of emergency and direct rule and installed a puppet Chief Minister, who was then later expediently replaced by Rahman as a reward for his loyalty to the Malayan agenda.

Taib was rewarded with a Federal Ministership and soon set about to please his Malayan masters by conspiring with them to bring Sarawak’s (and Sabah’s) oil and gas resources under Federal and Malayan control. They succeeded in this nefarious and diabolical agenda by by-passing the Sarawak Legislative Assembly, by getting Rahman as Chief Minister to expediently and single-handedly sign away all of Sarawak’s oil and gas wealth to the Federal government via Petronas.

There was no discussion or debate at all in Sarawak nor a single sound in the Sarawak Legislative Assembly. Under the orchestration of the Malayans, particularly Razak and Razaleigh, in cahoots with Rahman and Taib, Sarawakians didn’t even realise what was really going on.       

After the Malayans got their dirty hands on Sarawak’s petroleum resources via the illegal and unconstitutional Petroleum Development Act 1974 (PDA74), presented by Taib and supported by his and Rahman’s lackey Sarawakian members of Parliament themselves, for a paltry royalty payment of 5% of gross production (amounting to only 1% to 1.5% of the total petroleum value chain), they did as they pleased with those resources and the revenues derived from them.

Having been manipulated into giving up control of their oil and gas wealth to the Malayans, Sarawakians were forced to beg for the funds needed for their development, and Sarawak has been reduced to becoming one of the most backward and poorest states in Malaysia, in spite of having among the highest GDP.

Many Sarawakians, especially from the rural areas have been forced to work outside of Sarawak, while Malayans deprive Sarawakians of work and tens if not hundreds of billions of contracts in the petroleum industry.

The Malayans never even bothered to appoint any Sarawakians to the Board of Directors of Petronas or its senior management until recently when the State Secretary of Sarawak became the first after more than 40 years of its existence, even then only after Sarawakians started making noise.

Rahman and Taib were allowed to do as they pleased to Sarawak and Taib in particular became rich beyond belief from his corrupt control of Sarawak’s timber and land resources. They never bothered at all about how much wealth the Malayans were siphoning off from Sarawak’s petroleum resources.

It is this wealth that has given the Malayans the opportunity to mismanage, waste and siphon off hundreds of billions for their personal benefit at the expense of ordinary Sarawakians.

Over the years, in spite of Sarawak’s major contribution to the national coffers via Malayan exploitation of its oil and gas resources, its dilapidated schools, lack of clinics, hospitals, electricity, clean water and other basic amenities, especially in the rural areas, speak volumes not only for the gross neglect by the Federal government but also by the GPS Sarawak government itself that until recently was part of BN Malayan-controlled coalition of parties.   

The so-called "New Malaysia" Pakatan Harapan (PH) Federal government (also Malayan-controlled) is no better than the Old Malaysia either, and has back-tracked on its promise for higher oil royalties for Sarawak. In reality they don’t care and should have no say at all in Sarawak’s petroleum resources, nor should they dictate how much Sarawak should get from its own petroleum resources.

Given all that has happened and the above scenario, the Sarawak Dilemma is not really a dilemma and must be answered by Sarawak leaving Malaysia as its only option. Sarawakians can no longer put their trust in the Malayans nor their present leaders, all of whom have proven treacherous. Sarawakians must be the masters of their own destiny and must create and build a New Sarawak without GPS and/or PH or any of their useless component parties.

Rise, my fellow Sarawakians! We have nothing to lose and everything to gain! Take your destiny in your own hands, for the sake of your future generations, for justice and equity for all Sarawakians, for Fair Land Sarawak!

Agi Idup Agi Ngelaban!

Long live the Republic of Sarawak!

Al Tugauw

The Sarawak Headhunter

27th September, 2018

Friday, September 8, 2017

Who the hell is this Tunku Aziz chap?


COMMENT: Who the hell is this Tunku Abdul Aziz chap?

This is the typical brazen people from Malaya, very condescending, superior and lordly towards Sabahans and Sarawakians. His argument is as if Sabah and Sarawak begged to be a part of Malaysia. History has taught us that we did not want to form Malaysia; we wanted to form the Borneo Federation.

Let it be known that it was Malaya who did not want to merge with Singapore, unless the Borneo states were included in the package.

It is very obvious this character only read the “Social Contract” which is not documented and did not read the Malaysia Agreement 1963 – shame on you for calling yourself a Malaysian. To him only the Malays, Chinese, Indians, Sikhs and Eurasians are Malaysians – he did not even know that the Kadazan, Dusun, Murut, Rungus, Bajau, Dayak, Melanau, Kelabit etc are also people who form part of Malaysia.

The “primitive colonies” as he says it, do not know what we wanted to do, but Tunku Abdul Rahman knew that the money Malaya had based on rubber and tin, was fast depleting.

Unless Malaysia was formed, Malaya would be exporting their daughters as maids. As Abdul Aziz puts, “we celebrate our independence on August 31 and when you are part of us, our nation is YOUR nation”. What baloney! It is not “our nation is YOUR nation” it is more like “YOUR money is OUR money”

This Abdul Aziz chap perhaps has not heard of the Malaysia Agreement 1963; he may not even have read it or perhaps he is so senile he did not know the date September 16, 1963.

This is the day that Malaysia was formed by the Federation of Malaya (which later was named Malaysia), North Borneo (Sabah), Sarawak and Singapore. Singapore left the Federation of Malaysia later.

He claims he was a teacher, it means that he has no conscience that this is a part of Malaysia history which is not taught in school or even in universities. They wanted to hide September 16 so bad that they only started to celebrate it 47 years after 1963, but only in Sabah and Sarawak NOT Malaya.

Therefore, Malaya is NOT part of Malaysia; it is only masquerading as Malaysia.

Does this Abdul Aziz represent the leaders and elite in Malaya? Because if he does then Sabah and Sarawak is more than happy to leave “YOUR family” so that we can create “OUR own family” as was originally planned.

The problem with these leaders and elite from Malaya is that, “they need Sabah and Sarawak more than we need Malaya” – Sabah and Sarawak does not need Malaya.

Talking about security concerns is just a scare tactic for Sabahans and Sarawakians to hang on to Malaya. Unfortunately, the Tanduo incident (the Lahad Datu standoff) shows that Sabahans and Sarawakians do not think much about Malaya discharging their security and defense obligations.

What can we expect from insincere and dishonorable leaders and elites from Malaya? Their obligations in the Constitution which is mandatory to be implemented, yet, for more than five decades they have yet to fulfil any of it.

They even have the audacity to say, “my door is always open for negotiation.” What negotiations? All negotiations were already completed in 1963. That was the reason for the Malaysia Agreement 1963. Currently, there is no more need for negotiations, just implement what was incorporated in the Constitution – no more no less.

When shoved into a corner, a typical Malayan leader or elite would pretend to be stupid and try to interpret the law the way they like it. Perhaps many of the leaders and elite from Malaya overlooked the reason the United Kingdom was part of those who signed the Malaysia Agreement 1963.

That is a link to the United Kingdom – just in case the leaders and elite in Malaya try to play dumb. Sure, the leaders and elite in Malaya may have their opinion on Sabah and Sarawak, but there is also a set of opinions from Sabah and Sarawak.

We all can agree to disagree this is healthy for nation-building; the only way for this type of dispute to be resolved is through arbitration in London where there is no appeal. Are the leaders and elite from Malaya ready for this?

• Zainnal Ajamain an activist on the Malaysia Agreement 1963 and Sabah and Sarawak rights as well as the author of the bestselling book “The Queen’s Obligation”

Selling off Sarawak's Oil & Gas assets - Myth or Reality? How Does Sarawak Benefit?


Selling off Sarawak’s Oil & Gas Assets – Myth or Reality? How does Sarawak Benefit?

This paper reviews the recent report on Petronas seeking to sell a stake in the SK316 PSC and questions what Sarawak is or should be doing about it.

The news

Reuters on 20th Feb 2017 reported in Singapore that Petronas is aiming to sell its 49% stake in the SK316 offshore gas block in Malaysia’s Sarawak for up to $1 billion seeking to raise cash and cut development costs. According to its sources, Petronas is said to be working with an investment bank on the stake sale and the process was kicked off in February 2017.[1]

On 21st Feb 2017, The Star reported that Datuk Wan Zulkiflee Wan Ariffin, Petronas President and CEO denied the report that it was considering selling its stake in the SK316 offshore gas block in Sarawak to raise cash, adding that Petronas had a cash balance of RM130bil and that there was no need to sell to get money.[2]

Block SK316, located approximately 180 km North of Bintulu, Sarawak, is operated by Petronas and contains a number of gas fields including the NC3 field which feeds Malaysia's liquefied natural gas (LNG) export project, known as MLNG Train 9.

In 2011 & 2012, Petronas reported that Kasawari-1 and NC8SW-1 were the latest wells drilled in Block SK316 and were significant gas discoveries. The Kasawari field had over five trillion standard cubic feet (TSCF) with an estimated recoverable hydrocarbon resource of just over three TSCF, making it one of the largest non-associated gas fields in Malaysia. The recoverable resource for the NC8SW field is estimated at more than 450 billion standard cubic feet of gas.

In late 2015, Petronas called off the tender for the Kasawari field development, a contract worth over US$ 1 billion that had been offered earlier. The first gas for Kasawari was initially targeted for late 2018, which is now delayed.

According to the same Reuters’ sources, the stake to be sold is expected to include a combination of the producing NC3 gas field, the potential development of the Kasawari field and other exploration acreages in the block. The funds raised could also contribute to the future development of the Kasawari field.

The reality

As far as reported in the public domain, Block SK316 is still 100% held by Petronas Carigali. While in the early 2011/12, Petronas was optimistic that it could go on its own with the development of its gas discoveries in SK316 including the over US$ 1 billion required for the Kasawari development. Things started to turn south in 2015, and with the falling oil prices and dwindling cash flows added to both the increasingly technical and project development challenges for Kasawari, Petronas decided to put the project on hold.

Fast forward to 2017, where many believe that the Oil & Gas industry has reached its bottom and is now back on the upward trend, with time being right for Oil & Gas asset owners to evaluate their portfolio of assets in order to extract their maximum value. In this case, Petronas should not be exempted in assessing its portfolio of assets and identifying those that could be ‘flipped’ wholly or partially in return for cash or asset swaps or both. In the case of the SK316 block, where there exist producing fields, development projects and exploration options, selling a minority stake or farming out part of the PSC to others appears indeed to be an interesting option. 

However, as SK316 is a gas PSC and having the NC3 field already feeding LNG Train 9, added with the technical challenges of the Kasawari filed, it is expected that there will be limited candidates for the minority stake in SK316. Nevertheless, since NC3 is already producing, it becomes an interesting option for the existing partners in LNG Train 9 in the likes of JX Nippon Oil & Energy or parties with downstream interest in Bintulu to consider the upstream options.

Another interesting aspect for the minority stake in SK316 is that as Petronas will continue to be the operator, the stake is easily ‘bankable’ as the buyer can be a non-technical party, opening the door for pure financial investors. This is, however, subject to Petronas’ approval.

The possibilities

Putting aside the argument of whether Petronas is selling off Sarawak’s Oil & Gas resources or whether it has the right to do so by seeking investments for a minority stake in SK316, there indeed exists the potential for the State of Sarawak (or through one of its vehicles) to consider having the minority stake in the upstream PSC.

This has to be done through proper Oil & Gas due diligence process including examination of both technical and financial aspects of the PSC.

However, the more intriguing question remains whether the State of Sarawak is content to continue to be mere spectator, or wants to become an active participant in the development of the Oil & Gas resources of Sarawak.

“Mun minyak ngan gas ya di Semenanjung nun sik aku ambik peduli. Tapi mun di Sarawak aku ngambik peduli” Allahyarham Tok Nan.

The present Chief Minister Datuk Amar Abang Johari Tun Openg says Sarawakians must decide their own destiny, not to have somebody else deciding for them.

Thus, the State Government of the day must create policies that are Sarawak-centric and focused on the immediate and strategic needs of the State, he said.

“So we are left in a situation where we have oil and gas and cannot fully enjoy the benefit of having oil and gas. This cannot be…“

He said it is therefore of strategic importance that Sarawak should try to use as much as possible of its energy resources for its own economic development and industrialization.

The ‘recycled’ news about Petronas’ intent to divest 49% of its stake in SK316 offshore Sarawak is making the rounds again in the local news recently. It was first reported in February 2017 and was quickly denied by Petronas. In April, the Reuters report again resurfaced.

To the Oil & Gas industry observers, the news is a positive one as it improves the outlook delayed Kasawari gas project. BMI Research was upbeat on the potential sale of equity as the bulk of the funds generated from the stake sale in the SK316 offshore gas block is expected to be used to develop the Kasawari field. 

The Kasawari gas project, which is part of SK316, is a deepwater, sour gas development estimated to hold about 3.2 trillion cubic feet of recoverable gas resources.

“Despite promising below-ground prospects, development has progressed slowly due to the field’s deepwater, high-cost structure, and the relative inexperience of domestic engineering firms involving carbon dioxide removal. Potential integration of a foreign partner could dilute the project’s cost burden. Any future gas output from Kasawari will likely be designated for exports, given Malaysia’s comfortable surplus in gas,” the research house said in a statement.

We believe that Petronas’ search for potential foreign partner in the project is not unreasonable.

Saya Peduli

However, the news of the proposed sale is indeed a sour note for Sarawakians. Echoing the words of the late Tok Nan, any proposed ‘sale’ of Sarawak Oil & Gas assets by the party that was supposed to have the ‘vested interest’ of Sarawak in mind without the apparent knowledge of the government and people of Sarawak shows the ‘tidak peduli’ attitude of the parties involved.

Nevertheless, instead of dwelling in the negatives, SPG would like to propose that in the period where devolution of authorities and negotiations on Oil & Gas rights are taking place between the State and Federal government, a Joint Oil & Gas Development Authority (JOGDA) be created comprising the Federal government, the State government and Petronas where all strategic matters concerning Sarawak’s Oil & Gas matters, including new PSC awards, sale or transfer of interests, are deliberated.

SPG will lend its expertise to assist and support the government of Sarawak in the setting up of JOGDA in the spirit of ‘Saya Peduli’ in maximizing Sarawak’s socio-economic benefit and safeguarding its rights in the O&G industry for its present and future generations.

Until and unless Sarawak takes decisive action, we remain at the mercy of others.