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.


Khairy: Oil royalty hike affects tax collection, Petronas profits

October 30, 2012

Dateline 2012-10-01:

Demands for increased royalty to be paid to oil-producing states will cause both a drop in tax collections and profits for government-owned firm Petronas, Umno lawmaker Khairy Jamaluddin said today.

“We understand demands from states such as Kelantan but we have to think of the financial implications when we talk about increasing royalty,” the Rembau MP said in Parliament.

The Barisan Nasional (BN) and Umno Youth chief said it was “not so easy” as the tax collection from such states will be affected.

He also said that increasing the oil royalty will cause a drop in Petronas’s returns.

Dividends from the state oil firm currently account for over 40 per cent of the federal government’s revenue.


Kelantan gets leave to question Petronas over oil royalty claim

October 28, 2012

Dateline 2012-10-03:

After years of dispute, the Kelantan government is one step closer to resolving the long-standing oil royalty issue after the Federal Court today finally allowed the PAS-led state to ask state oil firm Petronas crucial questions on points of law related to its demand for payment.

A five-man Bench led by Court of Appeal President Tan Sri Md Raus Shariff awarded leave to Kelantan this morning as neither Petronas nor the federal government objected to the application.

..