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How Anwar would manage the 20 percent pledge is a mystery. Oil and gas reserves have never really benefited the peoples of the lands where these commodities are found in abundance, as established by numerous UN and other studies. In Malaysia, under the Production Sharing Contracts, 70 percent of oil barrels are recovered as cost oil by the contractor concerned. The remainder 30 percent is shared equally between the oil contractor and Malaysia, with each party getting 15 percent. Malaysia’s 15 percent is split 2:1 with 10 percent going to the federal government, and held by national oil corporation Petronas, and five percent paid by Petronas to the oil states concerned on behalf of the federal government. Hence, from where does Anwar get the magical royalty of 20 per cent to the oil states?
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