MP hopeful of oil royalty payments for Kelantan in Budget 2020

Kubang Kerian MP Tuan Ibrahim Tuan Man.

KUALA LUMPUR: An MP from Kelantan is hopeful that the state government will receive its oil royalty payments in Budget 2020, due to be tabled tomorrow.

Speaking to reporters in the Parliament lobby, Kubang Kerian MP Tuan Ibrahim Tuan Man said Prime Minister Dr Mahathir Mohamad had repeatedly promised the royalty payments.

“So far, we have not received them… we hope the promise will be fulfilled in this budget,” he said.

He added that the state government had fulfilled “almost all of the demands by the federal government”.

There was therefore no reason for Putrajaya not to pay the royalty, he said.

“Their excuse last time was because of the suit in court,” he said, referring to Kelantan’s suit against Petronas in 2010.

In its statement of claim, Kelantan had demanded that Petronas pay outstanding and future cash payments for petroleum produced off the state coast, as stated in their petroleum exploration agreement.

The state government reportedly withdrew the suit in June.

In March, Economic Affairs Minister Mohamed Azmin Ali said the federal government would pay Kelantan the oil royalty once Kelantan’s withdrawal of the suit was settled.