governments. The remaining 70% of oil (profit oil) will be divided again according to 70:30 formula where Petronas will take 70% and 30% goes to respective oil companies. Both Petronas and other oil companies will be subjected to 45% income tax by the federal government. Besides, 70% of any increase in oil price from the base price of US$12.72 will go to Petronas and the base price will increase by 5% each year so other oil companies will be able to cover for any cost inflation. In return, Petronas will not take over the equity of other oil companies. Each oil company will contribute 0.5% for a petroleum research fund. Another PSC (the deepwater model) was developed in 1985 to attract other oil companies to enter the Malaysian oil mining scene, while taking into account the rising cost of oil exploration (cost oil of 28%). Sharing of oil revenue become more flexible, depending upon the depth of the oil is found. The deeper the oil seeps (from 200 metres to more than 1 km), the higher the cost oil (50 to 75%). However, foreign oil companies will get higher share of profit oil (from 30 to 85%) in deepwater oil mining. In 1997, revenue over cost (R/C) model was adopted for PSC. Petronas will get higher share of profit oil as R/C ratio increases. In the mean time, 10% oil royalty stays the same throughout the years. Overall, Petronas earns 13.3% on R/C model and 12.5% on deepwater model. Meanwhile, the federal government earns 37% in R/C model and 25% in deepwater model. Finances Petronas has been publishing its financial reports online since 2008. However, certain quarters demanded detailed accounts for transparency regarding public funds mismanagement. Responding to allegations of public funds mismanagement, Petronas responded that its profits are managed by the Malaysian federal government, not by the company itself. In 2007, Petronas revenue come from petroleum exports from Malaysia (50%), domestic operations (20%) and international operations (30%). The weightage of the revenue streams were similar in 2020, where international operations accounted for 33% of total revenue received by Petronas. Petronas continuously provides the Malaysian government dividends from its profits. Since its inception in 1974, Petronas have paid the government RM 403.3 billion, with RM 67.6 billion in 2008. The payment represents 44% of the 2008 federal government revenue. Subsidiaries Petronas has more than 100 subsidiaries and around 40 Joint