Is Lawit really in Kelantanase waters?
Dateline 2012-08-06:
Menteri Besar Kelantan Datuk Nik Aziz Nik Mat said he will be seeking an audience with the Sultan of Kelantan to get the Sultan’s consent on the state government’s choice to represent Kelantan in the Special Committee on Petroleum Revenue which was announced by Prime Minister Datuk Seri Najib Tun Razak today.
He said the Kelantan government had yet to make a decision as to who would be picked for the committee.
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Posted by Wata
Isn’t this really outdated. How do I get onto this gravy boat?
Dateline 2012-06-21:
State oil firm Petronas signed three production sharing contracts with the exploration arm of U.S. firm Hess Corp on Thursday, kicking off a $5.2 billion gas project off Malaysia’s east coast.
The North Malay Basin project, comprising nine gas fields about 300 km (186 miles) off the east coast of peninsular Malaysia, is aimed at securing new gas supplies for Petronas as it faces a supply crunch.
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Leave a Comment » | Malaysia, oil and gas | Tagged: Hess, Kelantan, NMB, North Malay Basin | Permalink
Posted by Wata
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.
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Posted by Wata
Taken from Bernama, dateline 2010-03-11:
KUALA LUMPUR, March 11 (Bernama) — Kelantan is not entitled to claim oil royalty outside its territorial waters because the Emergency (Essential Powers) Ordinance 1969 is still enforced, said a law practitioner.
Datuk Mohd Hafarizam Harun said provision No.7 of the Ordinance stipulated that the state’s boundary which is the state’s land mass and its territorial waters stretched three nautical miles measured from the low-tide water mark.
However, two oil wells disputed by the Kelantan state government are located outside the ‘area’.
“To my knowledge, the Emergency (Essential Powers) Ordinance 1969 is still in force and has not been abolished by the government. In fact, there are Ordinances formulated at that time, such as ESCAR (Essential (Security Cases) Regulations 1975), which are still in force,” he said when contacted by BERNAMA, here Thursday.
He was commenting on the statement by former Sarawak chief minister Tun Abdul Rahman Yakub, who supported the stand of the Federal Government that the State Government was not entitled to claim the oil royalty unless it could prove that the state’s territorial waters exceeded three nautical miles.
And here’s more fuel to the fire.
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Posted by Wata
Taken from the New Straits Times, dateline 2010-01-27:
KOTA BAHARU: Kelantan will receive RM20 million as compassionate fund due under an oil and gas production arrangement in March.
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the decision was made after discussions with the national oil corporation, Petronas, recently.
“It involves revenue from oil and gas production in the South Earth Platform, Block PM301, close to Kelantan waters. The RM20 million is five per cent of the total revenue from the block since May 2008,” he told reporters after opening a forum on the compassionate fund, here last night.
More than 5,000 people attended the forum.
Mustapa, who is also chairman of the Kelantan Umno Liaison Committee, said the Kelantan government”s claim for RM11 billion in oil royalty was extreme as the oil production was not that high.
You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.
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Posted by Wata
From the Star, dateline 2009-11-10:
A Kelantan state executive councilor said the Federal Government was obliged to pay cash to petroleum producing states and not just in the form of a compassionate fund (wang ehsan).
Datuk Husam Musa said this was according to Clause 4 of the Petroleum Development Act (PDA) 1975.
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Follow Kickdefella’s blog if you are interested in this mix of oil & politics.
You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.
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Posted by Wata
Dateline 2009-08-13 taken from the Star:
The US$7bil Transpeninsular Pipeline (TPP) project that was to take off nearly two years ago may yet become a reality as a Chinese party is said to be keen to take a stake in the project with a shareholding agreement expected to be signed as early as tomorrow.
Malaysia - Transpeninsular Pipeline
Maybe Synergy can propose doing the flow assurance for this pipeline… nah, it’s single phase, any university student who stayed awake during the compressible flow lectures should be able to do this.
You can subscribe to an online version of the paper at the Bluehyppo site, follow links to e-browse.
1 Comment | Malaysia, oil and gas | Tagged: Kedah, Kelantan, transpeninsular | Permalink
Posted by Wata
I thought I’d post a link to Kickdefella’s blog entry where he writes about a visit to Cakerawala platform via boat flotilla, with members of the Kelantanese administration.
Nice night photo of the asset. And I see quite a lot of life jackets not done up properly.
I suspect CHOC’s internal memo writing staff are working themselves up in a fenzy about the unusual visit.
Leave a Comment » | Malaysia, oil and gas | Tagged: Cakerawala, CHOC, Kelantan | Permalink
Posted by Wata
Taken from Bernama, dateline August 1:
KOTA BAHARU, Aug 1 (Bernama) — The federal government is looking into the question of oil royalty for Kelantan, Prime Minister Datuk Seri Najib Tun Razak said Saturday.
He said the matter was still under study because of overlapping areas in the vicinity of the oil platform.
“When the study has been completed, I will send a representative to convey the result of the study to the state government,” he told reporters after opening the Kota Baharu Umno Division delegates meeting, here.
Kelantan is seeking RM1 billion in oil royalty from the federal government, claiming that the money constituted five per cent of the earnings from petroleum and liquefied natural gas extracted from offshore Kelantan since 2004 as per a report of the Statistics Department.
What ‘overlapping areas’ are being referred to? I know that the Joint Development Area is part of Kelantan costal waters, but you would think division of profits would have already been sorted out with neighbouring governments. If not, I pity CHOC.
And which oil platform we talking about? Isn’t it a gas platform that’s out there. Chakerawala, anyone? Or maybe they are talking about oil equivalent barrels (oeb)?
5 Comments | engineering, Malaysia, oil and gas | Tagged: CHOC, gas, JDA, Kelantan, royalties | Permalink
Posted by Wata
Continuing my expansion of the above article, I thought I would comment on the map that is displayed in the article.
First thing I would like to point out is that the author says the green and blue line represents an oil transportation system.
At the moment, peninsular Malaysia has no oil transportation system. And there are no plans to have a consumer level transportation system (i.e. from refinery to distribution centre, to being piped into petrol stations and the like).
However, the blue line can be said to represent the Peninsular Gas Utilization (PGU) routing. To quote from the website:
“Through its listed subsidiary PETRONAS Gas Bhd, PETRONAS has since 1984 been implementing the three-phase Peninsular Gas Utilisation (PGU) project, an infrastructure development project to process and transmit natural gas fed from the fields offshore Terengganu to end-users in the power, industrial and commercial sectors. The entire PGU system now spans over 1,700km, comprising main gas transmission pipelines, supply pipelines and laterals.”
That covers the blue pill. Let’s chat about the green pill some other time.
10 Comments | engineering, Malaysia, oil and gas | Tagged: gas, Kelantan, oil, Petronas, petronas gas, pgu, semenanjung | Permalink
Posted by Wata
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Wata - Malaysian Oil and Gas Engineer 