Kelantan withdraws oil loyalty law suit against PETRONAS

According to BERNAMA, Kelantan government has actually withdraw her oil royalty claim brought nine years ago.

The Kelantan government’s lawyer Aleeya Elyana Ahmad Mahreez told reporters this here yesterday after the matter came up for case management before High Court judge Justice Ahmad Bache in chambers; in the presence of federal counsel Siti Asmath Che Man, who acted for the Federal Government, a defendant in the case.

On Aug 30, 2010, the Kelantan government as the plaintiff filed a lawsuit against PETRONAS as the sole defendant.

However, the Federal Government then succeeded in its intervenor application and was named second defendant in the suit.

In the statement of claim, the Kelantan government demanded that PETRONAS pay the outstanding and future cash payments for petroleum produced off the Kelantan coast, as set in their petroleum exploration agreement.

The Kelantan government had also sought costs and damages but did not specify the total amount from PETRONAS.

In the suit, the state government said the Kelantan Petroleum Agreement signed on May 9, 1975, clearly stated that PETRONAS should pay in cash 5% of oil revenue, either from exploration onshore or offshore.

It claimed that a clause in the agreement stated that payments should be made twice a year, on or before March 1, and one more on or before Sept 1.

On March 7, Economic Affairs Minister Datuk Seri Azmin Ali said the Federal Government would pay oil royalty to Kelantan after the proceedings of the withdrawal of the Kelantan government’s lawsuit against it and PETRONAS were settled.

So, hopefully the case is settled and Kelantan gets her deserved dues.

Author: Aarif Billah

Those who matters would know, and those doesn't know won't matter

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