GE15: Kelantan to get full 5% oil royalties if Perikatan wins, says Muhyiddin

PETALING JAYA: Kelantan will get 5% oil royalty payments from the government should Perikatan Nasional secures a majority in the upcoming 15th General Election (GE15), says Tan Sri Muhyiddin Yassin.

The Perikatan chairman said the coalition would honour the Petroleum Development Act 1974 and the current PAS-led state would receive the full 5% oil royalty.

"For Kelantan's oil royalties, we will give it in full and it will no longer be questioned again," Sinar Harian reported Muyhiddin as saying.

Muhyiddin was speaking during a celebration to commemorate the Kelantan government's 32-year Islamic administration, which was held at the Sultan Muhammad IV Stadium on Oct 21.

Muhyiddin also said that Kelantan received RM400mil in oil royalty payments during his tenure as prime minister from 2020 to 2021.

Under the Petroleum Development Act 1974, Petronas is entitled to 5% royalty payment of profits from petroleum extracted on-shore or off-shore from states.

Kelantan has mainly been receiving "wang ehsan" or goodwill money.

The Kelantan government has been demanding the full oil royalty for decades, but Putrajaya says that the oil is extracted from outside Kelantan's territorial waters.

Kelantan had previously sued Petronas for what I claimed was overdue oil royalty payments in 2010, but the state discontinued the case after a nine-year legal battle in 2019.

However, demands for oil royalty payments have continued.