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

Oil eminence installments rely upon arrangements among states and the central government and have nothing to do with regional waters, said previous pastor Zaid Ibrahim.

The previous law serve said this because of money serve Tengku Zafrul Aziz’s comments that there would be no oil eminence installment to any state in the landmass, including Kelantan.

In a composed answer to the Dewan Rakyat, Tengku Zafrul had said despite the fact that petrol creation was being done near Kelantan, it was occurring outside the state’s waters. He added that Kelantan would keep on getting “wang ehsan” (generosity installment) for oil created off its coast.

Zaid said when the Kelantan government gave Petronas the freedoms to oil advancement, the arrangement qualified the state for an installment of 5% from the oil income.

“It (eminence) has nothing to do with regional waters regardless of the Act (Petroleum Development Act 1974) referencing the distance of 12 nautical miles (for petrol creation) from Kelantan, Terengganu, etc.

“Sabah Sarawak actually get their oil eminences regardless of (the oil fields) being outside three nautical miles, so it doesn’t make any difference,” he said in a Facebook post.

Zaid said the PAS-drove Kelantan government had recently sued the central government for oil eminence yet following 10 years had dropped the case since it was satisfied with the RM600 million given to the state by previous top state leader Dr Mahathir Mohamad.

“For Umno, there is no distinction. Annuar Musa (Ketereh MP) says he is desirous of the improvement he is finding in Sarawak.

“He shouldn’t be envious. All things being equal, he should request the privileges of the Kelantan public,” Zaid said.

Zaid said the financial plan of RM600 million every year to Kelantan was insufficient for state common assistance compensations and addressed how the state could advance without sufficient cash.

“The main (income) source is oil. That is our right. Hence, I trust individuals of Kelantan won’t be tricked. Allow us to join together and request this right. This is our main source to defeat neediness in Kelantan,” he said.

As of late, the Kelantan government communicated dissatisfaction with Putrajaya’s affirmation that Petronas would not be paying any oil sovereignty to the state.

Kelantan appointee menteri besar Mohd Amar Nik Abdullah said he was stunned over the information as the state government had expected oil sovereignty from the central government

Leave a Reply