The Sarawak government said it had reached a consensus to postpone demands for higher oil royalty from the federal government due to a drastic drop in the prices of crude oil in the global market.

Sarawak housing and tourism minister Amar Abang Johari Openg said a discussion was held with Tok Nan (Chief Minister Adenan Satem) regarding the matter.

"We agree that the price of crude oil has dropped from USD120 per barrel to between US$30 and US$35, meaning the revenue of the country has been affected badly," he told reporters after presenting Native Customary Rights land titles to 120 villagers of Kampung Senari, Kuching yesterday.

Abang Johari was commenting on Prime Minister Najib Razak's statement yesterday that the time was not right to consider an increase in oil royalty as claimed by Sarawak due to the drastic drop in the price of oil.

"Tok Nan feels we (Sarawak) need to wait for a more suitable time to discuss the 20-percent oil royalty request from the state…we will keep monitoring the oil price,” he said.

- Bernama