Kelantan’s oil royalty demand has no basis in law – Rais

(Bernama) KUALA LUMPUR, July 9 – The Kelantan state government’s demand for RM1 billion in oil royalty was made not according to the law, said Information Communication and Culture Minister Datuk Seri Dr Rais Yatim.

“This is different from the oil royalty enjoyed by the Terengganu state government as it is disbursed on the goodwill of the federal government, not derived from the rights under the laws,” he told reporters after presenting the 1Malaysia songwriting competition commendation certificates here today.

He said certain quarters were championing the issue to score political mileage and not on a legal premise.

Deputy Prime Minister Tan Sri Muhyiddin Yassin said yesterday that Petronas would give its clarification to the Kelantan state government based on the constitutions and legal system.

Rais said the government would shed light on the World Foreshore and Seabed Act, the Petroleum Act and other agreements related offshore oil royalty.