The federal government wants to be an intervener in the suit filed by the Kelantan state government against Petroliam Nasional Bhd (Petronas) over oil royalty.

Kuala Lumpur High Court judge Zabariah Mohd Yusof set March 22 to hear the government's application to be the intervener and to be named as the second defendant in the suit.

The judge fixed the date in chambers upon meeting counsel Alan Gomez for the state government, Rishwant Singh for Petronas and senior federal counsel Suzana Atan from the Attorney-General's Chambers for the government when the case came up for case management today.

In the suit filed on Aug 30, last year, the Kelantan government named Petronas as the sole defendant.

In the application filed on Nov 19, last year, among the reasons given by the Malaysian government were that the federal government should be made a defendant in the case so that all matters that were being disputed could be decided and judged effectively and completely.

It was also to ensure that all legal questions and issues arising or that concerned reliefs sought by the state government were decided fairly and appropriately between the Malaysian government and Petronas.

The Kelantan government had sued Petronas for alleged breach of contract relating to cash payments payable to Kelantan over oil revenue.

In the statement of claim, the state government among others, is seeking an order to compel Petronas to make full and truthful disclosure of all facts relating to cash payments payable to Kelantan, including for the period when petroleum was produced, found or obtained off the coast of Kelantan; areas or blocks from where petroleum was found and obtained; and the total sum of cash payments that should be paid to Kelantan.

The state government also demanded that all outstanding cash payments determined by the court must be paid within one month of the court order.

In addition, Kelantan is also seeking an order that all future cash payments, for petroleum produced off its coast as stipulated in the petroleum agreement, shall be paid to the state by Petronas.

The state government is also seeking damages and costs, however they did not specify the total amount of the claim sought from Petronas.

In the suit, the state government explained that the Kelantan petroleum agreement signed on May 9, 1975 clearly stated that Petronas should pay in cash five per cent of oil revenue either from exploration onshore or offshore.

It said that a clause of the agreement stated that the payment should be made in cash twice a year on or before March 1, or on or before Sept 1.

The state government also said that clause 3 of the agreement stated that the payment should continue until the oil deposit obtained from the state had been exhausted.

The state government also explained that ownership of petroleum resources and special rights were not a privilege for exploration by Petronas without giving any reward or compensation to the state.

- Bernama