The Kelantan state government has withdrawn its long-running oil royalty suit against national oil firm Petronas and the federal government.
This was confirmed to Malaysiakini today by lawyer Aleeya Elyana Ahmad Mahreez, who is acting for the Pas-led state government.
She said this transpired during a Federal Court case management of a related appeal by Petronas.
According to ecourtservices.kehakiman.gov.my/CauseList, Petroliam Nasional Bhd’s interlocutory appeal in the suit was set for case management via e-Review, whereby parties need not meet physically but instead the matter is conducted online.
“The Kelantan government has withdrawn its (oil royalty) claim against Petronas in the (Kuala Lumpur) High Court suit.
“Petronas, in turn, will withdraw its (related) appeal against Kelantan (state government) at the Federal Court,” she said.
“As far as the Kelantan government (suit) against Petronas, it (withdrawal) has already been effected at the high court,” she said.
When asked for more details over the matter, Aleeya declined to reveal more and assured that more details will be unveiled when the matter come up for case management at the Kuala Lumpur High Court on Tuesday next week (May 21).
On March 7, it was reported that the federal government will pay oil royalty to Kelantan after the withdrawal of the state government's lawsuit against it and Petronas is completed.
In saying this, Economic Affairs Minister Mohamed Azmin Ali said the state government had begun the withdrawal proceedings which are expected to be settled soon.
“After the proceedings are settled, we will execute what we have promised by making the payment (of oil royalty) directly to the state government,” he said.
Azmin said the government had made all oil royalty payments for 2018 to Terengganu while Kelantan only received a portion of the payments for 2018 due to the legal dispute.
Kelantan Menteri Besar Ahmad Yakub renewed the claim for oil royalty with the federal government on Jan 14 at an official meeting with Prime Minister Dr Mahathir Mohamad in Putrajaya.
The Kelantan government filed a lawsuit against Petronas over the oil royalty at the High Court in 2011 and began the proceedings to withdraw the suit in October last year.
Malaysiakini is currently attempting to reach out to lawyers from Messrs Cecil Abraham & Partners, a Kuala Lumpur-based law firm which is the counsel on record for Petronas. - Mkini
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