The High Court in Kuala Lumpur today set June 1 for a trial on the preliminary issues of law in the civil suit filed by the Kelantan government against the national petroleum corporation, Petronas.

Justice Zabariah Mohd Yusof fixed the date in chambers after meeting with lawyer Rahayu Mumazaini, for the Kelantan government, and federal counsel Idamaliza Maarof, for the defendant.    

On Jan 18, the High Court granted leave upon application by the federal government and Petronas for the judge to decide the suit by determination of the issues of law.

The two applied to the judge to decide the case by way of issues of law under Order 14A of the Rules of the High Court 1980 and Order 33 or the same rules without going for a full trial.

The Kelantan government is suing Petronas for allegedly breaching the contract on cash payable to Kelantan over oil revenue.

In the lawsuit filed on Aug 30, 2010, the plaintiff named Petronas as the first defendant.  

The federal government, however, has succeeded in its intervenor application and was named as the second defendant.

In its statement of claim, the Kelantan government demanded that Petronas pay the outstanding and future cash payments for petroleum produced off the Kelantan coast as set in the petroleum agreement.

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

In the suit, the state government said that the Kelantan Petroleum Agreement signed on May 9, 1975, clearly stated that Petronas should pay in cash five percent 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.

- Bernama