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Petronas directed to answer claims over oil royalty PDF Print
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Thursday, 09 July 2009 16:13

(The Star) - The Cabinet has directed Petronas to answer to claims that the Federal Government is cheating Kelantan out of its so called entitled oil royalty.

Deputy Prime Minister Tan Sri Muhiyiddin Yassin said Petronas had been given 48 hours to clarify the allegations made by state PAS deputy commissioner II Datuk Husam Musa.

Rebutting Husam’s arguments, Muhyiddin said PAS had conveniently twisted facts to mislead voters in the Manek Urai by-election and the Federal Government should confront the lies.

“From what I gather, the offshore areas are outside state boundaries and belong to the federal administration.

“Furthermore, most of the Petronas profits are re-channelled back to the Government.

“They provide about RM20bil to RM30bil per annum for us to bring development to the entire country. So, either directly or indirectly, Kelantan benefits,” Muhiyiddin said when campaigning at the Peria area.

He also directed the southern Kelantan Development Authority (Kesedar) to answer to all the alleged lies spread by PAS.

“Kesedar must list out all the roads, bridges and other infrastructure they have completed in the past few years.” he said.

“If not for Kesedar, the poverty level in the southern part of Kelantan would have been even higher.”

Comments (13)Add Comment
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written by rams609, July 09, 2009 16:56:58
ADA BANYAK MINYAK, JANGAN LUPA CUCI TANGAN PAKAI SABUN YA?????
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written by storm62, July 09, 2009 17:20:01
eh eh, jangan lupa cuci perut dgn sabun juga tau, sebab dah banyak makan minyak!!!
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written by arazak, July 09, 2009 17:26:31
Looks like Mat Sembab is asking Petronas and Kesedar to get the thieving UMNO regime out of a sticky. . ., err. . ., oily situation!
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written by uxzee, July 09, 2009 17:30:47
Just because of the by election in Kelantan, Muhyidin directed Petronas to answer within 48 hours. If not for the by election, Muhyidin will not bother.

Why not also ask Petronas to confirm within 48 hours how much of funds was actually given to Mahathir, Pak Lah and Najib over the years.

The people of Kelantan will not easily believe if the answer is not convincing.
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written by Trueandfair, July 09, 2009 17:31:25
I can tell you the answer that Petronas will give (technical doublespeak) - the oil and gas are drilled and extracted from Kelantan waters via horizontal drilling into oil-rigs sited in Terengganu waters and then they are landed through the Kertih oil and gas facilities - reason is cheaper and cost effective coz in Terengganu, Petronas (BN) have build all the rigs and landing facilities.

REAL REASON: One Petronas engineer mentioned before: Mahathir will not give PAS Kelantan a single red cent if he can avoid it and this is the best way. Imagine on Northern Kelantan fields, we let the Thais dig it in J-V and we get our cut from their sale as long as Kelantan State Govt get zero - that's why NO OIL RIGS in Kelantan water but in Thailand and Terengganu waters !!

Seriously, there are oil and gas in Southern Thailand and North Terengganu, IS KELANTAN SO UNLUCKY TO HAVE NO OIL/GAS WHEN SANDWICHED BETWEEN THIS TWO RICH FIELDS?? I bet my bottom dollar, Kelantan may have the richest oil and gas fields in Malaysia, richer than Terengganu especially when going out further, you have the Spratly Islands, which is another big reserve, surely Kelantan is not so unlucky to be surrounded by oil and gas fields but no a single drop in its watres - NOT LOGICAL AT ALL !!

PETRONAS - I WAIT FOR YOUR OFFICIAL "EXPLANATION" (read: bullshit ) smilies/grin.gif
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written by quietguy, July 09, 2009 17:39:39
It's very irresponsible for the federal government to ask Petronas to answer.
“From what I gather, the offshore areas are outside state boundaries and belong to the federal administration.
Muhyiddin is talking out of his ass. The Constitution only recognise 3 Federal Territories - Kuala Lumpur, Labuan and Putrajaya. All other areas, either offshore or onshore, belong to the States.
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written by Wudan, July 09, 2009 18:16:55
Woit Wak Sembab, no need Petronas to answer in 48 hours, Sheih Kickdefella already answer here : http://kickdefella.*********.com/

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written by Tom n Jerry, July 09, 2009 18:18:01
Dont ever dream of Petronas being transparent;it can be wishful thinking or plain day-dreaming;perhaps a change of government can reverse the bad situation and put everything on track;LOL
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written by Tom n Jerry, July 09, 2009 18:31:09
How about Sabah being the *milking cow*for Frderal;we have all the oil we want but revenue mostly gone to
federal coffers;how pathetic;almost the poorest state in Malaysia today considering the fact that there are mre than 2 million below poverty level surviving on ubi kayu and porridge;no better than the period of Japanese occupation!
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written by Wudan, July 09, 2009 18:51:17
Malaysia’s Contract Areas and Oil and Gas Field : http://www.petronas.com.my/int...ILE/Annual Report 2003 - Editorial.pdf

Please scroll down to page 54 and 55
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written by POKKU, July 09, 2009 19:10:31
I pray to almighty Allah that Petronas will give affirmative answer that there is oil in Kelantan water. After all petronas will pay the same ammount whether to federal or state government, and the CEO contract is not going to be extend anyway, and possibly all the BOD are going to be remove due to insobordination. Then it will be interesting to see how these Urm...No! people going to spin
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written by honeylemon, July 10, 2009 04:22:14
The gas (as well as condensate) from Malaysia-Thailand Joint Develepment Area, where the overlapping zone of Malaysia and Thailand EEZ, is coming from Block A18. The current producing field is Cakerawala, apprximately 70 nautical mile from Kuala Besar, Kelantan, and 120 nautical mile from Songkhla.

The field has been in production since 2004 (mothballed for 2 years from 2002 and re-commissioned in 2004). Later on in early 2008, the second phase from Bulan Bumi and Suriya were added into the stream for this block.

Current production stood at 690 MMscf/d. The current plan is to develop the third phase of block development for Bumi East, Senja, Wira and Suriya West which will increase the block production to approximately 1 bscf/d. All the gas from this block is landed in Chana, close to Songkhla, where the Gas separation Plant is located. The gas then distributed to Thailand grid and Malaysia through Trans Thai-Malaysia
Pipeline, which battery limit at Changlun, Kedah. Whereas the condensate separated offshore is stored at Puteri Cakerawala floating, storage and offloading vessel, permanently moored at vicinity of Cakerawala field (3 km away from Cakerawala-A platform).

There is also small portion of condensate and lpg extracted/trap (separated) at GSP which amount approximately 1000-1500 barrels at GSP in Chana (which sold to local refinery and market in Thailand. The field is lsated to continue producing for at least 20 years, and could be prolonged, depends on reservoir management and extraction rate/recovery technology development.

The block A-18 is operated by Carigali-Hess Operating Company (CHOC), a joint venture between Petronas Carigali JDA Sdn Bhd and Amerada Hess Thailand Ltd. Petronas Carigali is from Malaysia and Amerada Hess is awarded concessionaries by Thailand (Hess inherited the asset from its acquisition of Triton Energy Thailand). There are two other block in the MTJDA, which are B17 and C19.

The B17 is plan to start production in Aug/Sept 2009. Currently, the platform facilities installation and development drilling on wellhead platform is on-progress. The field condensate will also be stored and offload from a floating, storage and offloading vessel, permanently moored at vicinity of Muda Field (central processing platfrom for B17). The block may also see a minimum 3 phase development
scenario. The field from this block are Muda, Mali, Amarit, Jengka and Tapi. the intial plan is targeted at 290MMscf/d. However, the gas from this field is taken by Thailand which will be connected directly to Arthit gas pipeline.

All the blocks within MTJDA is governed under Malaysia-Thailand Joint Authority, a government-to- govenmet body acting as host authority, having statutory power over the block administration. every 3 years, the chairman of the MTJA is rotated between these two countries representative. The revenue and all income from the block will then be reimbursed back to each country (split by 50:50).

It is right that the field is located beyond the state water, i.e. 12 nautical mile from shoreline. So is the Terengganu state and Sabah.. (and many oilfields in the world)!! neither one having field located within 12 nautical miles from the shoreline.

as for Sarawak, only Baram delta group is within 12 nutical miles. Most of the B cluster group (the major field feeding to MLNG plant) is located beyond the state water. So, questioning how close an oilfield to the shore is like asking why not many man get pregnant (a typical soalan bodoh).

I repeat, NONE of the oilfields in Terengganu is within 12 nautical from state water! If Terengganu and other states can be given royalty from the block offshore beyond 12 nautical miles, why the federal government could not respect the right of
the state of Kelantan.

The royalty collected by MTJA for Malsyia side is reimbursed back to Federal Government of Malaysia. As the field is claimable by Malaysia due to the fact that it is within EEZ as it is nearest to Kelantan shoreline, the Federal Goverment shall respect the right of the state and be fair to say that it should re-imburse the royalty back to Kelantan, with the same mechanism it used for Terengganu,
as well as the mechanism used for Sabah and Sarawak.

If Kelantan is not part of the Federation of Malaysia, Malaysia will have no right on the field. Remember, the states formed the federation. And if Kelantan become part of Kingdom of Thailand post 1909, (like the Pattani brothers), the field is totally in favour of Thailand.

Though it sound academic, the fact can be well understood by men on the street. The perceived unfairness of federal government towards the State of Kelantan is unhealthy, as well as towards the states with the ruling parties of non-UMNO/BN.
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written by honeylemon, July 10, 2009 04:24:13
Beside the 3 blocks within the MTJA, there are 2 other blocks close to the state shoreline, PM301 and PM302, under CS Mutiara Sdn Bhd. CS Mutiara is the operating company set-up by a 50:50 JV between Petronas Carigali and Shell to explore the block prospect and to come up with field development programme. Few exploration fields has been struck, namely Bunga Dahlia, Dahlia-Channel, Bunga Kamelia, Bunga Zetung, Bunga Anggerik and Bunga Teratai.

The early indication is that the fields are marginal and cluster which is more challenging to be developed, the same case for other identified fields within Malay Basin. There are other field which has been delienated out form PM301 and PM302 acreage, namely Bergading field and Ular Sub-block. Bergading is 100% under PCSB and Ular Sub-block with PCSB as substantial majority owner.

The other block which near to Kelantan shoreline is PM3 under Malaysia-Vietnam Commercial Arrangement Area (MVCAA) which has been in production since 1997. The field located within this block (producing) are Bunga Kekwa, Bunga Raya, Bunga Seroja and Bunga Orkid. Other field which yet to come onstream are Bunga Pakma and Bunga Tulip.

All the blocks within Kelantan shoreline does yet to contribute to any significant spill to state, except the usage of Pengkalan Chepa airport as helibase. You may notice the helicopter hangar as you touch down at Kota Bharu Airport. There is no supply base even with the fact that vessels run from any Kelantan local jetty (used by fishermen) could save 2/3 of journey taken if they have to travel to Kemaman Supply Base or almost 40% saving if compared to Songkhla Supply Base.

We have seen the gas landed at Chana GSP as well as tie-in of block B17 to Arthit. The Chana GSP as well as Cakerawala trunkline from offshore still have enough ullage to cater for any upside potential. Therefore, the logical sense is to have supply base in Kelantan as to ensure local/kelantan have the spillover effect form the offhore devlopment. otherwise, kelantanese just being spectators to the field development, due to umno's treachery and hasad dengki.
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