Kelantan claims RM800m per annum oil royalty


Taken from the Malaysian Insider, dateline 2010-08-30:

The Kelantan state government claims PETRONAS owes the state RM800 million per annum from the Kelantan-Thailand offshore area since 2005.

The Kelantan government filed a suit today at the High Court here against the oil giant for breaching the Petroleum Development Act (PDA) 1974 by failing to pay the state oil royalties.

“The worth of condensate (gas liquid) comes to about US$8.5 billion per annum from the joint development offshore area with Thailand,” said state executive councillor Datuk Husam Musa.

“Five per cent of that belongs to Malaysia, which is RM1.7 billion. Half of that belongs to Kelantan which is RM800 million. Petronas owes Kelantan RM800 million per annum since 2005,” he added.

The Kelantan state government said today that Petronas owes the state oil royalties from at least four offshore areas from which oil has been extracted from. These are Kelantan, Kelantan-Thailand, Kelantan-Vietnam and Kelantan-Terengganu.

This entry was posted on Monday, August 2nd, 2010 at 6:00 am and is filed under Malaysia, Malaysian election, oil and gas. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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