Eastern Region News November 04, 2009 16:07 PM Kelantan Engage Panel Of Lawyers To Look Into Oil Royalty Claim KOTA BAHARU, Nov 4 (Bernama) -- The Kelantan government is expected to engage a panel of lawyers to look into the oil royalty claim from the Federal government. State Public Administration, Finance, Economic Planning and Community Development Committee chairman Datuk Husam Musa said though a compassionate payment was announced Wednesday, in lieu of the oil royalty, a meeting would be held with the panel of lawyers to discuss three main issues involved. The first issue would be to discuss whether to cancel the agreement between the state and the Federal government, dated 1975, which allows Petronas to carry out oil and gas exploration activities in areas that belonged to Kelantan. The second issue would be, to seek an injunction from the international court, against two foreign companies from Canada and United States, operating in the jointly developed area off Kelantan shores. "We will get international surveyors and detailed documents and information with regard to the claims," he told reporters after a state executive council meeting here Wednesday. Prime Minister Datuk Seri Najib Tun Razak today announced a compassionate payment to Kelantan through Petronas, starting next year, in lieu of the oil royalty claimed by the PAS-led government. Kelantan had earlier submitted an official claim to the Federal government, to a tune of RM1 billion, backdated to 2004 as based on the statistics department's report. The third issue would be to study the Prime Minister's statement involving petroleum exploration in the PM301 area which totally falls under Kelantan. He also questioned the rationale for paying Sabah, Sarawak and Terengganu oil royalty while Kelantan would only receive a compassionate payment for oil exploration activities carried out three nautical miles from Kelantan shores. "Oil exploration activities in the three states are also carried out three nautical miles from their shores but they receive royalty. Why is Kelantan not paid royalty? According to Petronas' yearly report, the three states are paid oil royalty," he said. He added that though negotiations with the Federal government would continue, the oil royalty claim would be pursued. -- BERNAMA