Kelantan drops oil royalty suit against Putrajaya

Kelantan filed the suit on August 30, 2010, over claims that Petronas violated the royalty payment contract over petroleum revenue. — Reuters pic
Kelantan filed the suit on August 30, 2010, over claims that Petronas violated the royalty payment contract over petroleum revenue. — Reuters pic

KUALA LUMPUR, June 28 — The PAS-led Kelantan government today withdrew completely its oil royalty lawsuit against the federal government, just a month after doing the same with national oil company Petronas

Lawyer for the state Aleeya Elyana Ahmad Mahreez said a notice of discontinuance was recorded before High Court judge Datuk Ahmad Bache at the High Court here, financial daily The Edge and news portal Malaysiakini reported.

“There is no order as to costs. We will be filing the discontinuance effective after this,” Aleeya Elyana was quoted telling reporters at the court complex after the case was heard in chambers.

Senior federal counsel Natrah Idri represented Putrajaya while Shukran Shafiq represented Petronas.

According to The Edge, Aleeya Elyana did not disclose the sum when asked how much Kelantan would be receiving.

But Malaysiakini reported Natrah saying the withdrawal of the suit has nothing to do with the oil royalty payments to Kelantan.

Kelantan filed the suit 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.

On March 7, national news agency Bernama reported Economic Affairs Minister Datuk Seri Azmin Ali as saying the federal government would pay oil royalty to Kelantan after the proceedings of the withdrawal of the Kelantan government’s lawsuit against it and Petronas were settled.

Kelantan withdrew its suit against Petronas on May 18 this year.

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