Sabah government tells two oil and gas companies to pay taxes or stop operations

The Sabah state government said it will cancel all the work passes for Repsol Oil & Gas Ltd (Repsol) and SEA Hibiscus Sdn Bhd (SEAH) if they fail to pay state taxes on time. The two oil and gas companies have accrued a total of RM97.31 million of the State Sales Tax and penalties. They met with the Sabah government in June to discuss the payment and requested a grace period. Local Government and Housing Minister Datuk Seri Panglima Masidi Manjun said on Tuesday (19 July) that the companies will be forced to stop operations in October if the claims are not settled.