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(NST) KUALA KRAI: Petroleum royalty is not an issue for Kelantan as the two petroleum exploration sites on the maritime border with Thailand and Vietnam are beyond the state's maritime boundary.

"The exploration sites are in areas that are being claimed by Malaysia and our neighbours. In fact we inked a memorandum of understanding with Thailand in 1979," Kelantan Umno chief Datuk Mustapa Mohamed said yesterday.

"The Malaysia/Thailand Joint Development Area was a result of the MoU with both countries holding equal share."

Mustapa said Petronas and Petro-Vietnam were conducting joint exploration in areas where Malaysia and Vietnam were claiming territorial rights.

The arrangement with Thailand and Vietnam conformed with international norms.

Advising Pas leaders against confusing the people for political mileage, Mustapa said only Terengganu, Sabah and Sarawak had rights to petroleum royalties.

The state maritime boundary is three nautical miles from the shore and anything beyond is under the Federal Government, including the exclusive economic zone.

The international trade and industry minister was asked to comment on Pas leaders' allegations that the Federal Government was shortchanging the people of Kelantan by not paying them royalty for petroleum explored off the Kelantan coast.

"Those who cry discrimination are liars. I have personally initiated and brought in development programmes and projects funded by the Federal Government.

"Under the Ninth Malaysia Plan the Barisan Nasional government has allocated RM7 billion for the state.

"The menteri besar (Datuk Nik Abdul Aziz Nik Mat) is aware of all these facts because he is also a board member of the ECER (East Coast Economic Region).

Kelantan folk, Mustapa said, should count the number of projects and programmes carried out by the BN government in the state.

On the Manik Urai by-election that will be held on July 14, Mustapa, who is also BN election director for Manik Urai said Deputy Prime Minister and BN deputy chairman Tan Sri Muhyiddin Yassin would announce the BN candidate today at 4pm.

"We have many aspiring and qualified individuals who want to be the candidate but the prime minister (Datuk Seri Najib Razak) will choose the best among them after taking into account input from the ground.

"We in Umno and BN will support the president's choice and ensure that we go into this struggle prepared to win.

"Our contest in Manik Urai is for the sole reason of wanting to improve the livelihood of the people here," Mustapa said.

Nomination day for the by-election is on July 6 and Pas is fielding local businessman and Kuala Krai division treasurer Mohd Fauzi Abdullah.

The state seat fell vacant following Pas representative Ismail Yaakob's death on May 25.

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