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.


NGOs to meet PM over Kelantan oil royalty rights

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.


Another ‘robbery’ of Kelantan’s oil wealth?

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.