S’wak to discuss oil royalty review with federal govt

September 7, 2012

Dateline 2012-08-20:

The state government will discuss the need to review the current 5% petroleum royalty paid to Sarawak with the federal government based on the prevailing close relationship and goodwill between both sides, Chief Minister Abdul Taib Mahmud said today.

Concurring that state leaders from both sides of the political divide had struck a common ground on the issue, he said, both sides needed to sit down and discuss the matter, especially following the recent announcement by Prime Minister Najib Tun Razak that a special committee was being set up to study the petroleum royalty to East Coast states.

Kelantan claims RM800m per annum oil royalty

August 2, 2010

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.

From Bernama – oil royalty payment to Terengganu

December 25, 2009

Taken from the pages of Bernama, dateline 2009-12-23:

KUALA TERENGGANU, Dec 23 (Bernama) — The Terengganu government is still discussing with the federal government the long-standing oil royalty payment to the state.

Menteri Besar Datuk Ahmad Said said the state government had rejected the Finance Ministry’s offer of RM1.686 billion in oil royalty and demanded that the state be paid RM2.792 billion for the period 2000 to 2009.

However, both parties had yet to reach a consensus on the matter. he said.

“Although the state government is hoping to resolve the oil royalty issue as soon as possible, there are several matters in the agreement which have yet to be agreed upon by both parties.

“I cannot explain the issues or new matters involved in detail as the discussion is still ongoing and it could jeopardise the outcome,” he said in reply to Datuk Seri Abdul Hadi Awang (PAS-Rhu Rendang) in the state assembly here today.

Don’t you just love politics?

From Bernama – Kelantan Oil Royalty Issue

August 6, 2009

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)?

Other articles on this are here and here.