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.
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Posted by Wata
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.”
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Posted by Wata
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.
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Posted by Wata
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.
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Posted by Wata
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.
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Posted by Wata
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.
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Posted by Wata
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.
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Posted by Wata
October 16, 2012
Suspicious, really? Noooooo…
Dateline 2012-09-22:
A coalition of pressure groups plans to hand the prime minister a petition over the Kelantan oil royalty issue carrying 150,000 signatures on October 3, the news portal Harakahdaily reported yesterday.
Early last month, Putrajaya set up a panel to resolve the long-standing issue that is expected to be a major campaign point for the PAS-led Kelantan state government in the coming general election.
The Kelantan government had previously been suspicious about the Najib administration’s forming of the oil royalty panel so close to the polls and asked for it to finish the probe in three months instead of the earlier planned six months.
On October 3, a convoy lead by the coalition calling itself “Royalti” will converge at the Federal Court in Putrajaya to pledge their support for a fair distribution of oil royalty to Kelantan.
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Posted by Wata
September 17, 2012
Oh, please, what do you mean ‘claim’?
Dateline 2012-09-08:
Kelantan state exco Husam Musa has claimed that plans are afoot to build pipes to channel oil resources extracted from Bunga Kamelia zone in Kelantan to Kemaman in Terengganu.
Husam said starting next year, national oil giant Petronas would land gas in Terengganu, after extracting it from Block PM301 in Bunga Kamelia zone, which falls under Kelantan’s territory.
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Posted by Wata
September 2, 2012
Dateline 2012-08-15:
ONE of the topics that have dominated media space in recent days has been the oil royalty issue. Putrajaya has pledged to look into a mechanism that will ensure fair distribution of oil and gas revenue to producer states in Peninsular Malaysia. A special committee will be set up to carry out a comprehensive study, taking into account all aspects of the claims, and will make appropriate recommendations to the federal government.
The committee will be chaired by former chief justice Tun Abdul Hamid Mohamad and members will comprise legal experts from within and outside the country as well as representatives from the Terengganu, Kelantan and Pahang governments, according to reports.
With few details for now, one wonders why the committee’s scope covers only the eastern states of Peninsular Malaysia and not also the oil-producing states of Sabah and Sarawak. If that is the case — covering only Terengganu, Kelantan and Pahang — then would the original agreement that paved the way for cash payments for oil and gas discovered in the states, which was governed by the 1974 Petroleum Development Act (PDA), be more relevant?
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Posted by Wata
Wata - Malaysian Oil and Gas Engineer 