Kelantan files to discontinue oil royalty suit against Petronas

The Kelantan state government has sought to discontinue its oil royalty suit against Petronas.

The PAS-led state government's counsel Aleeya Elyana Ahmad Mahreez confirmed this when met this morning saying a notice to this effect was filed on May 13.

She was speaking to reporters after case management for the suit held in the chambers of Kuala Lumpur High Court judge Ahmad Bache.

"The notice of discontinuance was filed on May 13," Aleeya said, adding that the next case management for the matter has been set for June 21.

She, however, said she has not received any instruction from the Kelantan government on whether to drop legal action against the federal government, who is also a defendant in the matter.

Appearing for the federal government, senior federal counsel Siti Asmath Che Man declined to comment when met after proceedings.

On Friday last week, Malaysiakini reported that the Kelantan state government has withdrawn its long-running oil royalty suit against national oil firm Petronas.

Quoting Aleeya, the lawyer said that the federal government, who had successfully intervened in the matter previously, was the remaining defendant in the matter.

She said that in return for the Kelantan state government withdrawing the suit, Petronas would, in turn, withdraw its related appeal at the Federal Court.

On March 7, it was reported that the federal government would pay oil royalty to Kelantan after the withdrawal of the state government's lawsuit against it and Petronas was completed.

In saying this, Economic Affairs Minister Mohamed Azmin Ali said the state government had begun the withdrawal proceedings which were expected to be settled soon.

“After the proceedings are settled, we will execute what we have promised by making the payments (of oil royalty) directly to the state government,” he said.

Azmin said the government had completed all oil royalty payments to Terengganu for 2018 while Kelantan only received a portion of their payments for 2018 due to the legal dispute.

Kelantan Menteri Besar Ahmad Yakub renewed the state's claim for oil royalty from the federal government at an official meeting with Prime Minister Dr Mahathir Mohamad in Putrajaya on Jan 14.

The Kelantan government filed a lawsuit against Petronas over the non-payment of oil royalty in 2010. Proceedings to withdraw the suit began in October last year. - Mkini