KUALA LUMPUR, Nov 25 — The thorny oil royalty row between PAS-led Kelantan and Pakatan Harapan-ruled Putrajaya can only be resolved after the state and federal governments determine the number of oil fields within the northeast state’s borders, a Singaporean daily reported today. PAS...
BY IDA LIM
“We have to settle the boundary issue first so that they will pay the royalty,” Takiyuddin was quoted saying.But Economic Affairs Minister Datuk Seri Azmin Ali said that only two are confirmed to be within three nautical miles from the state shoreline, adding that there is a need to check if the remaining 10 fields outside of that area belong to Kelantan or its neighbours, whether Pahang or Terengganu.
Political risk consultancy firm KRA Group’s strategy director Amir Fareed Rahim was reported saying that the oil royalty payment has always been a “sticky issue” between the Kelantan state government and the federal government especially when Dr Mahathir was leading it. He was reputedly not been keen to pay a 5 per cent oil royalty to Kelantan in the past, to prevent PAS from enhancing its political war chest with the money.
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