Kelantan govt files appeal in suit over oil royalty

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KUALA LUMPUR: The Kelantan state government has filed an appeal against a decision to allow the federal government to be an intervener in its suit against Petroliam Nasional Bhd (Petronas) over oil royalty.

The state government had also filed another appeal over the High Court’s refusal of its application for the suit to be transferred back to the New Commercial Court (NCC).

However, no date has been fixed by the Court of Appeal to hear the two appeals, said counsel Rishwant Singh for Petronas when met by reporters yesterday.

He said High Court Judge Datin Zabariah Mohd Yusof had set May 20 for mention of the suit after meeting him, counsel Nur Ashikin Abdul Rahim for the state government and senior federal counsel Noorhisham Ismail representing the Federal Government when the case came up for case management.

On March 22, Justice Zabariah granted the Federal Government’s application to be an intervener in the suit and to be part of the suit as the second defendant.

She had, on March 31, rejected the state government’s application for the suit to be transferred back to the New Commercial Court (NCC).

The state government wanted the case to be transferred back as the suit was initially filed at the NCC, but it will now be heard at the New Civil Court (NCvC).

In the suit filed on Aug 30, last year, the Kelantan Government named Petronas as the sole defendant for alleged breach of contract relating to cash payments payable to the state over oil revenue.

In the statement of claim, the state government among others, is seeking an order to compel Petronas to make full and truthful disclosure of all facts relating to cash payments payable to Kelantan, including for the period when petroleum was produced, found or obtained off the coast of Kelantan; areas or blocks from where petroleum was found and obtained; and the total sum of cash payments that should be paid to Kelantan.

The state government also demanded that all outstanding cash payments determined by the court must be paid within one month of the court order.

In addition, Kelantan is also seeking an order that all future cash payments for petroleum produced off its coast, as stipulated in the petroleum agreement, shall be paid to the state by Petronas.

In the suit, the state government explained that the Kelantan Petroleum Agreement signed on May 9, 1975 clearly stated that Petronas should pay in cash five per cent of oil revenue, either from exploration onshore or offshore. — Bernama