NGO takes demand for oil royalty to Petronas HQ

comments     Harith Najmuddin     Published     Updated

Royalti Kelantan today submitted a memorandum at the Petronas headquarters, urging the national oil company not to deprive Kelantan of the state's rightful royalty from oil obtained from the state.

Some 10 activists, led by Royalti Kelantan president Nazri Deraman, gathered outside the Petronas Twin Towers in Kuala Lumpur, which was heavily guarded.

Petronas sought to engage with the group and sent its strategic communications officer Intan Razak to receive the memorandum.

The officer also handed the protesters Petronas goodie bags.

Earlier, Nazri said the NGO was seeking equal treatment for all the oil producing states.

 “We came to know that royalties have been paid to Sarawak, Terengganu and Sabah. 

However, to date, Kelantan has been denied oil royalty," he said.

The memorandum claimed Petronas had breached the Petroleum Development Act 1974.

It requested that the annual five percent royalty, which has not been paid to Kelantan, be reimbursed.

According to the Petroleum Development Act 1974, petroleum corporations shall make to the government of the federation and the government of any relevant state such cash payment as may be agreed between the parties concerned.

Nazri said that the federal government received royalties from Petronas, but the Kelantan government had never received any.

“We understand that this case is being reviewed by the courts, but as a movement, we want to push ahead,” said Nazri

Petronas does provide goodwill payments to Kelantan but the money is controlled by the federal government.

This is the latest of several memoranda that Royalti Kelantan has submitted to Petronas on the matter.

The protest, which started at 3pm, was calm and peaceful. The protesters dispersed about an hour later.

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