In 1911, Royal Dutch Shell opened the first onshore cable tool drilling well in Miri. It paid to the Brooke government the equivalent of 0.05 to 0.14 Malaysian ringgit of royalty per tonne of oil produced from 1911 to 1940. From 1946 to 1956, Royal Dutch Shell paid to Crown Colony of Sarawak equivalent to 0.40 to 0.80 Malaysian ringgit per tonne in royalty fees. In 1958, the Sarawak Oil Mining Ordinance was proposed. Oil companies were subjected to oil royalty rates according to distance from the shores i.e. the further the oil well is from the shore, the lower the payment of oil royalty to the government. Royalties for natural gas was also defined. The oil companies were also subjected to a 40% general corporate income tax after other expenses and oil royalties were deducted from the oil revenue. However, no oil royalty payment was recorded after 1956. Miri onshore oil field reserves was diminishing since 1968 and later shut down in 1973.
