Kelantan state government applies for injunction against Petronas

KUALA LUMPUR: The Kelantan state government yesterday applied for an interlocutory injunction to prevent Petroliam Nasional Berhad (Petronas) from paying oil royalties to the Government of Malaysia.

They are seeking to prevent Petronas from paying the five per cent oil royalty on the oil obtained from the state’s coast and sold by the company or its agents, pending the state government’s suit against the national petroleum corporation in 2010.

The application was filed through Messrs Tommy Thomas at the High Court registrars office, naming Petronas and the Government of Malaysia as defendants.

The Kelantan government also applied for an injunction to order Petronas to deposit the oil royalties into a profit earning syariah-compliant account, pending its suit against the company in 2010.

The Kelantan government sued Petronas for breach of contract on Aug 30, 2010.

In its statement of claim, the state government claimed that the Kelantan Petroleum Agreement, signed on May 9, 1975, clearly stated that Petronas must pay five per cent of its oil revenue from on and off shore explorations.

It further claimed the agreement also stated that the payment must be paid in cash bi-annually.

The Jan 31 hearing at the High Court was postponed pending the application to appeal at the Federal Court. — Bernama

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