Embrace the spirit of Petroleum Development Act

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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Oil royalty settlement: PKR drills for details

June 9, 2012

Yeah, we want to know. But no, you don’t have to explain to voters.

Dateline 2012-04-24:

PKR today called on Putrajaya to disclose details behind the settlement reached between Terengganu and Petronas after the former dropped its legal suit against the national oil company in a longstanding oil royalty row.

Party secretary-general Saifuddin Nasution said the Barisan Nasional-controlled state must explain to its voters what were the benefits received from the out-of-court agreement to disprove assumptions that their right to oil royalty was determined by political discretion.

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Petronas says not involved in Terengganu oil royalty settlement

May 10, 2012

Yup, you heard it here.

Dateline 2012-04-26:

Petronas confirmed today that the Terengganu government has withdrawn its RM2.8 billion oil royalty suit against oil company and Putrajaya, but stressed it has no links to any out-of-court settlement over the matter.

According to The Edge Financial Daily on Monday, the Barisan Nasional Terengganu government had withdrawn its civil suit against Petronas and the federal government on March 21 but did not provide details of its out-of-court settlement.

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Terengganu drops Petronas suit

May 8, 2012

I say, What¿

Dateline 2012-04-23:

The Terengganu government has dropped its long-standing legal battle with national oil corporation Petroliam Nasional Bhd (Petronas) and the federal government over unpaid oil royalty payments amounting to several billion ringgit.

In response to queries from The Edge Financial Daily, Petronas said the Terengganu government had withdrawn its law suit on March 21 in “respect of the payment of oil and gas royalties”.

The oil corporation, Malaysia’s only Fortune 500 listing, declined to provide details of the settlement.

“We are not in a position to explain the settlement terms as these are under the purview of the federal government and the Terengganu government,” Petronas said.

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Memory Lane – Teluk Kalung

June 18, 2010

I don’t travel a lot to Teluk Kalung, as I don’t have any supplies stored in the KSB. When I was based in Kertih, prior to them opening the new road that bypasses Kg Teluk Kalung, you had to go past the place whenever you wanted to head south along the coast.

However, I did take the opportunity to visit the place during the past few weeks. Man, did I get lost. Also, I didn’t realise that there was a Pantai Teluk Kalung.

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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?

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It’s official – TCOT handover from Exxon to PCSB

March 26, 2008

On Tues, 25th March, 2008, the staff at Terengganu Crude Oil Terminal (TCOT) were informed that TCOT and the Onshore Slug Catcher (OSC) will be changing operatorship. By 1st quarter 2009, PETRONAS Carigali Sdn Bhd (PCSB) will be operating TCOT and OSC. ExxonMobil Exploration and Production Malaysia Inc. (EMEPMI) staff currently working at the two locations will be offered a voluntary separation scheme (VSS).

TCOT and OSC are located in the picturesque town of Kertih, Terengganu, Malaysia. TCOT is the terminal for all the offshore oil pipelines, whereas OSC, together with the PCSB operated Onshore Gas Terminal (OGT) are the collection points for offshore gas.

Carigali will send a handover team over on 1st April 2008, with the intention to be ready for full transfer of operatorship by 31st August, 2008.

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