Court asks why oil royalties were paid

KUALA LUMPUR: The Court of Appeal queried why the Federal Government and Petronas paid billions of ringgit to Terengganu for 25 years when they knew that they need not have done so for oil extracted outside the coastal line of the state. 

Justice Mohd Noor Ahmad asked the question when Senior Federal Counsel Datuk Azahar Mohamad argued during an appeal that the state had no legal right to oil extracted three nautical miles beyond its land area.