Kelantan drops suit against Petronas, but not federal government

The PAS-led Kelantan state government has dropped its oil royalty lawsuit against Petronas but is proceeding with the lawsuit against the federal government. ― Picture by Azneal Ishak
The PAS-led Kelantan state government has dropped its oil royalty lawsuit against Petronas but is proceeding with the lawsuit against the federal government. ― Picture by Azneal Ishak

KUALA LUMPUR, May 18 — Kelantan has withdrawn its oil royalty lawsuit against national petroleum company Petronas, the state government’s lawyer Aleeya Elyana Ahmad Mahreez confirmed.

But she said the PAS-led state government is proceeding with the lawsuit against the federal government, which is named as the second defendant, Berita Harian reported today.

The matter was raised at the Federal Court during case management involving Petronas yesterday.

The Malay daily reported the interlocutory appeal by Petronas was conducted through electronically through the court’s e-Review system where lawyers need not be physically present in the courtroom.

Aleeya Elyana said this meant Petronas will also withdraw its appeal against the Kelantan government in the Federal Court.

“We have not yet received any feedback on resolving the issue with the second defendant,” she was quoted saying.

The lawyer did not elaborate, except to say the details of the case will be revealed during case management at the High Court here on May 21.

On March 7, it was reported that Petronas would pay back the oil royalties once the Kelantan government has withdrawn its suit.

The suit was first filed on August 30, 2010, over claims that Petronas violated the royalty payment contract over petroleum revenue.

The state government sought the outstanding payments as well as future payments generated from the petroleum produced by Kelantan.

On July 2014 the Federal Court decided the suit should be returned to the High Court for a legal decision, per Rule 14A of the Rules of Court 2012.

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