Oil Royalty: Kelantan Not Eligible Because Of The Emergency

March 11, 2010 16:50 PM

Oil Royalty: Kelantan Not Eligible Because Of The Emergency Ordinance 1969

KUALA LUMPUR, March 11 (Bernama) – Kelantan is not entitled to claim oil royalty outside its territorial waters because the Emergency (Essential Powers) Ordinance 1969 is still enforced, said a law practitioner.

Datuk Mohd Hafarizam Harun said provision No.7 of the Ordinance stipulated that the state’s boundary which is the state’s land mass and its territorial waters stretched three nautical miles measured from the low-tide water mark.

However, two oil wells disputed by the Kelantan state government are located outside the ‘area’.

“To my knowledge, the Emergency (Essential Powers) Ordinance 1969 is still in force and has not been abolished by the government. In fact, there are Ordinances formulated at that time, such as ESCAR (Essential (Security Cases) Regulations 1975), which are still in force,” he said when contacted by BERNAMA, here Thursday.

He was commenting on the statement by former Sarawak chief minister Tun Abdul Rahman Yakub, who supported the stand of the Federal Government that the State Government was not entitled to claim the oil royalty unless it could prove that the state’s territorial waters exceeded three nautical miles.

Hafarizam said the provisions such as ESCAR which was used to prosecute 29 members of the militant group Al-Maunah in the year 2,000 for treason by going against the government which was elected democratically, proved that the provision which was formulated then had yet to be abolished.

Previously, the Kelantan government had insisted on claiming the royalty payment running into billions of ringgit from the federal government for the oil explorations carried out in its waters, but the state was found to be ineligible under the existing law.

The two oil wells disputed are located in an area 150 nautical miles from the Kelantan waters in the overlapping continental shelf in the Gulf of Siam, South China Sea, which was developed jointly with the Malaysia-Thailand Joint Development Area (MTJDA) since 1979.

[b]A news portal today quoted Abdul Rahman as saying that Sarawak was eligible to receive the oil royalty because Queen Elizabeth had declared in 1954 that “the east Malaysian state’s territorial waters extended beyond the three-nautical-mile limit”.

This led to the position of the law on the matter being different between the states in Peninsular Malaysia and Sabah and Sarawak which also signed the agreement with Petronas in 1975/1976, under the Petroleum Development Act 1974.[/b]

The Kelantan state government submitted that based on the Petroleum Development Act 1974, the state was eligible to receive five per cent oil royalty from the volume produced by the two wells concerned besides the possibility of taking the matter to court.

The federal government agreed to give a compassionate payment of RM20 million which was also five per cent of the gas production since May 2008 in an area known as Block PM301, located near the state’s waters.

– BERNAMA

Source: http://www.bernama.com/bernama/v5/news_lite.php?id=481630

PM3, Malaysia-Vietnam Border… :slight_smile:

And we’re still waiting on the Oil royalties… as stated in 1954!! Mana dia! Mana!!! ngam also this news come out as the economic reformation takes place… why does this news and that makes me smell monkeys around the corner?

are we going to see an increase in monkeys coming in to Sabah & Sarawak? you bet it is…!

we still in emergency (darurat)

We’re still in emergency??? WTF…Oil, oil oil…know how to suck money instead of developing their own states. ==

we are pretty much being neo-colonised anyways.

[quote=“Fallenelves”]And we’re still waiting on the Oil royalties… as stated in 1954!! Mana dia! Mana!!! ngam also this news come out as the economic reformation takes place… why does this news and that makes me smell monkeys around the corner?

are we going to see an increase in monkeys coming in to Sabah & Sarawak? you bet it is…![/quote]

you know whats the hardest , the angriest part of all ? they used our oil and lumber money and develop their place and then some West Mas said that we are living on a tree …COOL

Good that some of you lots realize that, share it with the rest of the people you know… everyone must do their duties as Sarawakian to protect our borders against things like these. We don;t mind them buying lumber or resources from us, that’s good for the state to develop, but taking it and at a dirt cheap price that even a blind man could see?

We live on trees? LoL at least we respect and be tolerant to our neighbors, and not burning things or blowing things up.

[quote=“Fallenelves”]Good that some of you lots realize that, share it with the rest of the people you know… everyone must do their duties as Sarawakian to protect our borders against things like these. We don;t mind them buying lumber or resources from us, that’s good for the state to develop, but taking it and at a dirt cheap price that even a blind man could see?

We live on trees? LoL at least we respect and be tolerant to our neighbors, and not burning things or blowing things up.[/quote]

yeah but before we accused anyone, let me say something, i hope we dont generalize people in this matter , not all West Malaysia are bad, they just want to survive , just like us,even in religion there are blacksheeps , those blacksheeps aint representing anything, only their own self i just dont like the government , and i dont even know wheter those PKR, DAP, PAS are gonna help too , who knows maybe they are just as same as BN.

You are a confuse young man.

correct for " i just dont like the government , and i dont even know wheter those PKR, DAP, PAS are gonna help too , who knows maybe they are just as same as BN. " part

http://www.miricommunity.net/viewtopic.php?f=32&t=26882 look at that, look at who has been in power for so long, and tell me if the one that has been in power for so long has done something to uphold those agreement or not. Then you decide your course of action and the road you’re gonna lead. In whichever things you decide… you are liable to the action and decision taken.