With three days to polling day for the crucial Manek Urai by-election, Kelantan senior exco member Husam Musa has piled further pressure on the federal government over the state's oil royalty claim.
Husam said the silence from Petronas, despite a cabinet directive on Wednesday to issue a statement within two days, showed Kelantan's claim for royalty from oil extracted 150 miles off state capital Kota Bharu was legitimate.
“If Petronas wants to rebut our claims, they would have done so by now. They are not able to do so and the national oil company's silence showed Kelantan's claim is right.
“Furthermore, some of the documents backing Kelantan's claim to oil royalty has come from Petronas itself. I think for this reason also, Petronas cannot rebut what the Kelantan government feels as its legitimate right,” he added.
Husam said this on the sidelines of a function yesterday where the Kelantan Fishmongers and Wholesellers Association gave its backing to PAS candidate Mohd Fauzi Abdullah in the by-election.
On June 17, the Kelantan cabinet approved the state government's move to claim RM1 billion from the federal government for royalty from oil extracted off Kelantan shores since 2004.
According to the Malaysian Statistics Department 2004 study, Kelantan's single oil platform - along with two each in Terengganu and Sabah - accounted for 62.5 percent of the country's oil production.
The Kelantan government claims that 34 years ago, then menteri besar Mohammad Nasir had signed an agreement with the national oil company for oil exploration.
Section 4 of the Petroleum Development Act 1974, which Kelantan is a signatory, states:
“In return for the ownership and the rights, powers, liberties and privileges vested in it by virtue of this Act, the Corporation (Petronas) shall make to the Government of the Federation and the Government of any relevant State such cash payment as may be agreed between the parties concerned.”
Manek Urai which has 12,293 voters, where 99.2 per cent are Malays, is seen as a crucial contest for Umno, whose candidate is former Kelantan South Development Authority manager Tuan Aziz Tuan Mat.
Tuan Aziz, 39, who is also the Kuala Krai Umno Youth chief, is facing the PAS division treasurer and fish wholeseller Mohd Fauzi, or better known as Abe Uji among the locals, in a straight fight between two traditional foes.
Deep-sea vessel to go to oil platform
Husam, who is also Salor assemblyperson, refuted the argument that Kelantan was not entitled to the royalty claims for oil extracted more than three nautical miles off its shores.
“This is a wrong perception which the BN try to create as the rightful claim includes areas within the Exclusive Economic Zone and Territorial Zone, and hence Kelantan is entitled to 10 percent royalty of the oil extracted.
“Furthermore, the oil extracted is 150 miles from Kelantan shores. The federal government is paying oil royalty to Sabah and Terengganu whose oil platforms are 220 and 210 miles off their respective shores,” he said.
Husam questioned why Sabah and Terengganu were entitled to oil royalty payments and not Kelantan.
According to Husam, the Kelantan government has planned a trip on Aug 3 to view the Cakerawala oil platform.
He said the state government had chartered a deep-sea vessel for the trip where “we would view the platforms, one of which is within Thai jurisdiction and another two in Malaysia”.
“We would like to extend our invitation to Umno Youth chief Khairy Jamaluddin and International Trade and Industries Ministry Mustapha Mohamed, who is also Kelantan Umno chief.
“We will travel there and see for ourselves. I hope that by viewing it would dispel all arguments that Kelantan is not entitled to the claim,” he said.
Husam quipped that Khairy and Mustapha could have 'unity talks' with Pakatan Rakyat on the vessel.
“If they feel they want to unite (with us), we can board the vessel. We would also be inviting reporters,” he said.
Husam said the silence from Petronas, despite a cabinet directive on Wednesday to issue a statement within two days, showed Kelantan's claim for royalty from oil extracted 150 miles off state capital Kota Bharu was legitimate.
“If Petronas wants to rebut our claims, they would have done so by now. They are not able to do so and the national oil company's silence showed Kelantan's claim is right.
“Furthermore, some of the documents backing Kelantan's claim to oil royalty has come from Petronas itself. I think for this reason also, Petronas cannot rebut what the Kelantan government feels as its legitimate right,” he added.
Husam said this on the sidelines of a function yesterday where the Kelantan Fishmongers and Wholesellers Association gave its backing to PAS candidate Mohd Fauzi Abdullah in the by-election.
On June 17, the Kelantan cabinet approved the state government's move to claim RM1 billion from the federal government for royalty from oil extracted off Kelantan shores since 2004.
According to the Malaysian Statistics Department 2004 study, Kelantan's single oil platform - along with two each in Terengganu and Sabah - accounted for 62.5 percent of the country's oil production.
The Kelantan government claims that 34 years ago, then menteri besar Mohammad Nasir had signed an agreement with the national oil company for oil exploration.
Section 4 of the Petroleum Development Act 1974, which Kelantan is a signatory, states:
“In return for the ownership and the rights, powers, liberties and privileges vested in it by virtue of this Act, the Corporation (Petronas) shall make to the Government of the Federation and the Government of any relevant State such cash payment as may be agreed between the parties concerned.”
Manek Urai which has 12,293 voters, where 99.2 per cent are Malays, is seen as a crucial contest for Umno, whose candidate is former Kelantan South Development Authority manager Tuan Aziz Tuan Mat.
Tuan Aziz, 39, who is also the Kuala Krai Umno Youth chief, is facing the PAS division treasurer and fish wholeseller Mohd Fauzi, or better known as Abe Uji among the locals, in a straight fight between two traditional foes.
Deep-sea vessel to go to oil platform
Husam, who is also Salor assemblyperson, refuted the argument that Kelantan was not entitled to the royalty claims for oil extracted more than three nautical miles off its shores.
“This is a wrong perception which the BN try to create as the rightful claim includes areas within the Exclusive Economic Zone and Territorial Zone, and hence Kelantan is entitled to 10 percent royalty of the oil extracted.
“Furthermore, the oil extracted is 150 miles from Kelantan shores. The federal government is paying oil royalty to Sabah and Terengganu whose oil platforms are 220 and 210 miles off their respective shores,” he said.
Husam questioned why Sabah and Terengganu were entitled to oil royalty payments and not Kelantan.
According to Husam, the Kelantan government has planned a trip on Aug 3 to view the Cakerawala oil platform.
He said the state government had chartered a deep-sea vessel for the trip where “we would view the platforms, one of which is within Thai jurisdiction and another two in Malaysia”.
“We would like to extend our invitation to Umno Youth chief Khairy Jamaluddin and International Trade and Industries Ministry Mustapha Mohamed, who is also Kelantan Umno chief.
“We will travel there and see for ourselves. I hope that by viewing it would dispel all arguments that Kelantan is not entitled to the claim,” he said.
Husam quipped that Khairy and Mustapha could have 'unity talks' with Pakatan Rakyat on the vessel.
“If they feel they want to unite (with us), we can board the vessel. We would also be inviting reporters,” he said.
12/07/09
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