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| Oil royalty issue continues to dominate Manek Urai |
| Written by Sharon Tan | |||
| Friday, 10 July 2009 21:47 | |||
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Kelantan senior executive councillor Datuk Husam Musa said the JDA was only a corporate body, not a new territory. “It cannot be said that Kelantan has no rights because there is a JDA. JDA is only a corporate body and not a new territory. They have authority to develop the area and not extract the area out of Kelantan,” he said. Kelantan is claiming oil royalty from the Thai-Malaysia joint venture in the JDA, Malaysia-Vietnam venture in the CAA and also the gas extraction from the PM301. The JDA started production in 2004 while the CAA, in which Petronas has 46% stake, started in 1997. The PM301 is expected to start production in 2011. Husam said Kelantan’s rights exist because the relevant act stated that its entitlement covers both onshore and offshore areas. “Offshore includes territorial zone and the exclusive economic zone. It does not mean coastline but it is further than that,” he said, and dismissed the argument that Peninsula states are entitled to claim up to three nautical miles only. “The regulation of 12 nautical miles was under the Seabed and Continental shelf Act which has been superseded by other Acts,” he said, adding that economic zone under the United Nations’ convention is 200 miles. “That is why Sabah, Sarawak and Terengganu are entitled to royalty. Kelantan’s distance is shorter. If Sabah is entitled, so is Kelantan. We are sure of that,” said Husam. He suggested that a forum on oil royalty is arranged so that people could listen to the arguments of Federal government and Petronas. On Petronas' silence of the matter, he said: “Petronas is hesitant to reply because the truth is in favour of us. Petronas cannot lie. The Act is there. We have contacted all the oil and gas companies to help us with information to fight the issue.” He also told reporters after a gathering with fish wholesalers that Pakatan Rakyat MPs are making a trip to see the oil rig and is inviting Barisan Nasional/Umno's Datuk Mustapha Mohamed and Khairy Jamaluddin to come along. “We can have the unity talks on the boat. If they sincerely want to unite, they need to pay us our royalty,” he said, hoping that Petronas will give them permission to climb up the oil rig.
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