KUALA LUMPUR, Oct 30 — The payment of oil royalty to Kelantan and Pahang involving 10 producing fields will only be made after the maritime boundaries of the two states have been established in accordance with the existing legislation.
Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said this was because there had never been maritime boundaries established between the states in Malaysia.
“Therefore, royalty payment from these 10 producing fields are not paid to any state until the maritime boundaries are established subject to existing legislation.
“As long as the maritime boundaries issue is not resolved, it will prolong. Let’s resolve this now. When it commences then we will know which field belongs to which state,” he said when winding up the debate on the Supply Bill 2020 for his ministry at the Dewan Rakyat today.
Mohamed Azmin said of the 12 oil and gas fields in the east coast waters, only two, namely, Bumi South and Suriya Selatan, were clearly located within three nautical miles off the coast of Kelantan. — Bernama