Kelantan Sues Petronas Over Cash Payments For Petroleum

The Kelantan government has filed a breach of contract and constitutional suit against Petronas.

Mentri Besar Nik Aziz Nik Mat and his lawyer Tommy Thomas filed the civil suit at the commercial registry here at 9.25am Monday.

According to the statement of claim, Petronas wrongfully, in total failure of consideration and in breach of the Petroleum Development Act, the Kelantan Petronas Agreement and Kelantan Grant, failed to make cash payments to the Kelantan state government for petroleum won and obtained off-shore Kelantan.

Speaking to reporters later at the Federal Territory mosque, Nik Aziz said it was compulsory for him, as the state government's head, to protect its assets in whatever manner, including consultation and taking legal action.

The plaintiff claimed that despite failing to make the said cash payments, Petronas wrongfully continued to win and obtain petroleum off-shore Kelantan without paying the state.

Such conduct on the part of Petronas, it claimed, constituted unfair discrimination which resulted in severe financial loss to the Kelantan state government, and would continue to do so.

It claimed that Kelantan has not been treated equally with Sabah, Sarawak and Terengganu.

Among others, it asked for an order that all arrears of cash payments be paid to Kelantan within a month of a court order.

It also asked for damages, costs and interests, and further relief deemed fit by court.

Last Updated (Monday, 30 August 2010 13:36)