KUALA KRAI, July 9 — State executive councillor Datuk Husam Musa is determined to convince Manek Urai voters that Kelantan is owed up to RM1.7 billion
KUALA KRAI, July 9 — State executive councillor Datuk Husam Musa is determined to convince Manek Urai voters that Kelantan is owed up to RM1.7 billion in oil royalty by the Barisan Nasional federal government.
At a ceramah here two nights ago, he said the PAS state government had found an agreement from 1975 with Petronas which accorded it a 5 per cent royalty in exchange for the rights to all fossil fuel in the state.
"Umno is not following the agreement. This is Kelantan's right and we will fight to the end," he told the 4,000-strong crowd.
The former PAS vice-president raised this again at a press conference yesterday, signalling his intent to pursue the money, which would more than cover the state's budget deficit of just over RM20 million a year.
[Husam wonders why his party's government does not get enough of the oil money. - Picture by Choo Choy May]
Husam wonders why his party's government does not get enough of the oil money. - Picture by Choo Choy May
The claim appears to severely undermine Umno's campaign message that it will bring development where PAS has failed should it win the July 14 poll as the state government could utilise the cash for its own development plan.
The dispute pertains to a find 150km off the coast of Kelantan which has been productive since 2004 under a joint development area (JDA) agreement that sees the Malaysia and Thailand splitting the revenue.
But Information, Communication and Culture Minister Datuk Seri Rais Yatim had on Monday attempted to shoot down Husam's claims by stating that it was located in the Gulf of Siam and the subject of overlapping international claims and not within Kelantan waters.
As such, he said, it did not matter what sort of documentation PAS had as it did not fall under the state's sovereignty.
However, Husam distributed copies of the agreement to reporters which clearly states that "the exclusive rights... whether lying onshore or offshore of Malaysia is vested in Petronas" and that "Petronas shall make... cash payment... to the equivalence of 5 per cent of the value of the petroleum."
Husam argued that the agreement did not make a distinction on overlapping claims and Kelantan should be given royalty based on Malaysia's half of the revenue.
"Sabah's oil is found 210km off its shores and Terengganu's oil and gas activity is 220km away. How can they be entitled to royalty and Kelantan doesn't get any?" he asked.
He said that the exact value of production since 2004 was not known as figures were not readily available but that it was estimated to be between RM850 million to RM1.7 billion.
Husam also said there were two other wells that were in dispute, one which overlapped with Vietnam and another where the landing point for the pipes is in Thailand when Bachok is nearer.
He said that so far Kelantan had not received a reply from the federal government which was "a positive sign because if we were not entitled at all, they would send a rejection immediately."
He insisted that "the money is for the people" and that it would fund a special economic zone in Bachok for a petrochemicals site including a project to supply electricity to Thailand.
At a ceramah here two nights ago, he said the PAS state government had found an agreement from 1975 with Petronas which accorded it a 5 per cent royalty in exchange for the rights to all fossil fuel in the state.
"Umno is not following the agreement. This is Kelantan's right and we will fight to the end," he told the 4,000-strong crowd.
The former PAS vice-president raised this again at a press conference yesterday, signalling his intent to pursue the money, which would more than cover the state's budget deficit of just over RM20 million a year.
[Husam wonders why his party's government does not get enough of the oil money. - Picture by Choo Choy May]
Husam wonders why his party's government does not get enough of the oil money. - Picture by Choo Choy May
The claim appears to severely undermine Umno's campaign message that it will bring development where PAS has failed should it win the July 14 poll as the state government could utilise the cash for its own development plan.
The dispute pertains to a find 150km off the coast of Kelantan which has been productive since 2004 under a joint development area (JDA) agreement that sees the Malaysia and Thailand splitting the revenue.
But Information, Communication and Culture Minister Datuk Seri Rais Yatim had on Monday attempted to shoot down Husam's claims by stating that it was located in the Gulf of Siam and the subject of overlapping international claims and not within Kelantan waters.
As such, he said, it did not matter what sort of documentation PAS had as it did not fall under the state's sovereignty.
However, Husam distributed copies of the agreement to reporters which clearly states that "the exclusive rights... whether lying onshore or offshore of Malaysia is vested in Petronas" and that "Petronas shall make... cash payment... to the equivalence of 5 per cent of the value of the petroleum."
Husam argued that the agreement did not make a distinction on overlapping claims and Kelantan should be given royalty based on Malaysia's half of the revenue.
"Sabah's oil is found 210km off its shores and Terengganu's oil and gas activity is 220km away. How can they be entitled to royalty and Kelantan doesn't get any?" he asked.
He said that the exact value of production since 2004 was not known as figures were not readily available but that it was estimated to be between RM850 million to RM1.7 billion.
Husam also said there were two other wells that were in dispute, one which overlapped with Vietnam and another where the landing point for the pipes is in Thailand when Bachok is nearer.
He said that so far Kelantan had not received a reply from the federal government which was "a positive sign because if we were not entitled at all, they would send a rejection immediately."
He insisted that "the money is for the people" and that it would fund a special economic zone in Bachok for a petrochemicals site including a project to supply electricity to Thailand.
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