Oil royalty: No petroleum extracted within T’ganu waters, Putrajaya says

 

The issue of cash payments from petroleum revenue to the Terengganu government does not arise because no petroleum has been discovered and extracted within the state.

The Finance Ministry stated that any revenue from the petroleum fields off the east coast of Peninsular Malaysia is found and obtained outside the state's territorial waters, which is beyond three nautical miles from the low-tide line of the territorial sea in accordance with the Territorial Sea Act 2012 (Act 750).

The ministry said that cash payments from petroleum revenue will be paid directly to the state if discovered and extracted within the territorial waters of three nautical miles obtained from the low-tide line in accordance with Act 750.

"However, the federal government has channelled royalty money to the state of Terengganu.

“As of 2023, the federal government has channelled RM958 million to Terengganu to implement projects and programmes for the benefit of the people there," it said.

The Finance Ministry said this in a written response in the Dewan Negara today, responding to a question by Senator Razali Idris on July 25 regarding accountability in settling pending and scheduled payments estimated at over RM200 million for the Terengganu state government for the years 2023 and 2024.

It added that the federal government is open to discussions and ready to consider proposals from the Terengganu state government that can be mutually agreed upon to involve programmes and projects that can be financed through royalty allocations.

- Bernama