Petronas paid royalties of RM7.364 bil from 2004-2007 to Terengganu

Wow, so much money paid to Terengganu (That is RM7,364 million to put it in perspective!) and I wonder where does the money goes to? If the money were well spend, i should think Terengganu would become one of the richest state in Malaysia today. No more poor folks and no more debt for Terengganu state. Why don't the new MB engage an accounting firm and do a thorough auditing of state fund. It would be interesting to know where the coffers go to? We also want to know the real cost of the Crystal Mosque, the Monsoon cup and other mega projects. No wonder the Agong is so hype up about the MB's issue.

But i don't think that would happen, as it would tarnish the image of so many people. I really pity the Terengganu folks.

From NST online:

KUALA LUMPUR, tues:
National oil company Petronas paid out a total of RM26.839 billion in royalties to the Federal Government and the state governments of Terengganu, Sabah and Sarawak for the financial years ended March 2004 till March 2007.

Minister in the Prime Minister’s Department Senator Datuk Amirsham A.Aziz said the royalty paid to the Federal Government was RM13.420 billion, Terengganu RM7.364 billion, Sabah RM1.234 billion and Sarawak RM4.821 billion.He said the country’s crude oil reserves and condensate were expected to last 22 years while the gas reserves 39 years.“Although it looks like the reserves period is long, the reality is the country is also importing oil and gas to partly cater to the local demand.

Therefore, the country is expected to become a net importer of energy in the near term projected to be by 2014,” he said during the Question and Answer session at the Dewan Rakyat sitting today.He was replying to a question from Datin Seri Wan Azizah Wan Ismail (PKR-Permatang Pauh).On Petronas contribution or royalties to the states, he said they were paid according to the formula that had been fixed which is five percent or half of the royalty received by the Federal Government. Amirsham said the petroleum and gas products exported by the subsidiary companies of Petronas are based on world market prices while in the domestic market, the prices of products sold are partly fixed by the government such as the sale of gas to the electric sector and non electric sector.

Petronas recorded a total revenue of RM165.3 billion from the sales of its petroleum and gas products for the financial year ended March 31, 2007.To a question on whether the government had agreed to paying Sarawak a royalty rate of 20 percent for the oil from new oil fields, Amirsham said as at this point the government had no plans to review the royalty.