Oil found at inshore areas in Kelantan

Source: http://thestar.com.my/news/story.asp?file=/2006/5/4/nation/14140643&sec=nation

Thursday May 4, 2006

Oil found at inshore areas in Kelantan


KOTA BARU: Oil deposits have been found at the inshore areas of Tumpat and Bachok districts in Kelantan.

State financial planning committee chairman Datuk Husam Musa said the state government planned to appoint a consultant to confirm if there were oil reserves around both inshore areas, which could be extracted commercially.

He added that the oil discovery was made recently by certain parties who alerted the state.

The consultant would be entrusted to conduct a detailed study and offer recommendations to the state.

We will then forward a report to the Federal Government. If it is true, then it is good news for the state and the country. It will boost Malaysias fuel production, Husam said after the weekly state exco meeting here.

In another development, the state signed a 50-year lease agreement with a plantation operator to convert 4,200 ha of its forest reserve in Gua Musang into an agricultural scheme.

Mentri Besar Datuk Nik Abdul Aziz Nik Mat who witnessed the signing, said the land would be converted into oil palm and rubber plantations, with returns expected in eight years.

The land would also be utilised to grow cloned rubber trees that could supply wood for the furniture sector.

The agreement was signed between the Kelantan Government, State Islamic Foundation and Upayapadu Plantations (M) Sdn Bhd, which was represented by its chairman Datuk Seri Dr Wong Teon Chai.

Nik Abdul Aziz said the deal would generate income worth millions to both the foundation and state government through annual premiums from the land lease and profit sharing.

He said the deal showed that the state was serious in bringing development here and creating jobs for the people.