Oil royalty has nothing to do with territorial waters, Zaid tells finance minister

January 7, 2022

Dateline 2021-11-29, FMT:

 Oil royalty payments depend on agreements between states and the federal government and have nothing to do with territorial waters, said former minister Zaid Ibrahim.

The former law minister said this in response to finance minister Tengku Zafrul Aziz’s remarks that there would be no oil royalty payment to any state in the peninsula, including Kelantan.

In a written reply to the Dewan Rakyat, Tengku Zafrul had said although petroleum production was being carried out close to Kelantan, it was taking place outside the state’s waters. He added that Kelantan would continue to receive “wang ehsan” (goodwill payment) for petroleum produced off its coast.