Malaysia’s govt tussles with Kelantan over oil royalty payments, offshore boundary

January 17, 2020

Dateline 2019-11-19, NST:

Malaysia’s Pakatan Harapan (PH) government and Kelantan state are in a tussle over some RM1 billion (S$330 million) a year demanded by the east coast state, in a tug of war over “oil royalties” that may well decide the political future of the east coast state.

Parti Islam SeMalaysia (PAS), a federal opposition party that has controlled Kelantan for 29 years wants the funds from Prime Minister Mahathir Mohamad’s government, as promised in PH’s election manifesto.


Kelantan MB: Federal govt will pay oil royalty

July 15, 2019

Dateline 2019-06-17, Malay Mail:

The Kelantan government is confident the federal government will pay the petroleum royalty to the state despite several postponements, said Mentri Besar Datuk Ahmad Yakob.

He said the Kelantan government would adopt the approach of waiting for the latest decision from the federal government after all procedures linked to the withdrawal of a oil royalty lawsuit against Petroliam Nasional Berhad (Petronas) was completed.


Oil royalty: Some issues need to be discussed with federal govt, says Kelantan MB

June 30, 2019

Dateline 2019-05-21, Malay Mail:

The Kelantan government hopes that its oil royalty lawsuit against Petroliam Nasional Berhad (Petronas), which has been withdrawn, will be fully settled soon.

Mentri Besar Datuk Ahmad Yakob said the matter should have been settled by now, but due to some technical issues, it had not.


Kelantan drops suit against Petronas, but not federal government

June 25, 2019

Dateline 2019-05-18, Malay Mail:

Kelantan has withdrawn its oil royalty lawsuit against national petroleum company Petronas, the state government’s lawyer Aleeya Elyana Ahmad Mahreez confirmed.

But she said the PAS-led state government is proceeding with the lawsuit against the federal government, which is named as the second defendant, Berita Harian reported today.


Show how oil royalty will benefit the Kelantan people, urges Husam

September 30, 2018

Dateline 2018-07-13, Malaysiakini:

The Kelantan government should take advantage of the federal government’s approval for the petroleum royalty to be channelled to Kelantan for the benefit of the people in the state, said Kelantan Pakatan Harapan chairman Husam Musa.

He said the state government should present a proposal on how it planned to use the royalty so that the people would know how they were going to benefit from it.


Kelantan to include 14 questions in oil royalty suit

April 25, 2015

Dateline 2015-03-13, FMT:

The Kelantan Government has sought the High Court to include 14 questions and issues of law in the hearing of its suit against Petroliam Nasional Berhad (Petronas) for alleged breach of contract over its oil royalty.

Among others, the questions involve what rights the state government has over petroleum onshore and offshore, prior to the coming into force of the Petroleum Development Act 1974 on October 1, 1974 and the execution of the Kelantan Agreement and Kelantan Grant on May 9, 1975.

The other issues were, whether by refusing to pay cash payments to Kelantan although converting petroleum obtained offshore without paying for them, Petronas had acted in breach of Article 13 of the Federal Constitution.

 


Kelantan losing out from ambiguities in Petroleum Act

December 6, 2014

Dateline 2014-09-27, FMT:

Oil and gas expert Anas Alam Faizli said ambiguities in the Petroleum Development Act of 1974 (PDA) must be sorted out, as different parties were interpreting it differently.

Speaking to FMT, Anas said, “There are now a host of different interpretations and ambiguities in relation to what documents can be applied to resolve the issue which is the main cause of concern. If this is not addressed there will be no end to this.

Anas said this in regard to Kelantan’s oil royalty dispute in which one party claimed there was no need for royalty payments to Kelantan.

Explaining it in greater detail, Anas said, ”Others may argue, that the Assignment Deed, and the Vesting Grant 1975/1976 supersedes the law, which then conflicts with views by other experts who may interpret it differently based on their perspective of the Federal Constitution or the Petroleum Act.”


Mustapa challenges Kelantan govt to show proof for oil royalty claim

November 28, 2014

Dateline 2014-09-14, Malay Mail:

Kelantan Barisan Nasional (BN) chairman Datuk Seri Mustapa Mohamed today challenged the PAS-led state government to show proof for the oil royalty claim bandied about by the party.

“The state government claimed that the Federal Government had denied their right to receive the oil royalty. This is a big lie. They have no right.

“We challenge them to show proof that the Federal Government must pay RM12 billion in oil royalties to Kelantan,” he said during a political talk in Tebing here, tonight.


RM12b petroleum royalty demand by Kelantan govt without basis – PMO Read more: RM12b petroleum royalty demand by Kelantan govt without basis – PMO

April 19, 2013

I saw this and wondered, what was PCSB Peninsular Malaysia Operations (PMO) doing, giving out press statements? Dateline 2013-04-02:

The RM12 billion petroleum royalty demand by the Kelantan government is not based on any reasonable grounds, said a statement issued by the Prime Minister’s Office (PMO) here today.

The statement said the demand not only was unreasonable from the legal standpoint but also technicalities related to activities for oil and gas extraction in the area concerned.

“According to the law, the state of Kelantan, just as the state of Terengganu and all other states in Peninsular Malaysia, only have rights to demand petroleum royalty if extraction of oil and gas is done not more than three nautical miles from the low tide line or the shore of the state concerned,” it said.


Kelantan would settle oil royalty suit out of court, says Husam

November 21, 2012

Dateline 2012-11-02:

 Kelantan is willing to settle its long-drawn oil royalty dispute out of court if Putrajaya expedites approval of the PAS state’s demand for RM800 million in annual royalties owed since 2005, state executive councillor Datuk Husam Musa has said.

Husam, who heads Kelantan’s Oil Royalty Action Committee, was weighing in on the government’s announcement on Tuesday promising a RM100 million payment to Pahang for untapped oil fields off the state coast.

“There is no more reason to refuse payment to Kelantan. I hope we can settle this out of court,” he told The Malaysian Insider earlier this week.