KUALA LUMPUR (Nov 19): The Federal government will seek more details from national oil company Petroliam Nasional Bhd (Petronas) in relation to requests for gas procured in offshore Kelantan to be directed into the State.

“It is a principle of the Federal government to uphold justice for the Kelantan State government, as underlined in the 11th Malaysia Plan Mid-Term Review,” said Economic Affairs Minister Datuk Seri Azmin Ali in Parliament today.

Azmin, who was referring to Block PM301 and PM302 which sit at the Malaysia-Thailand border offshore Kelantan, said a detailed review on the request will be shared with the Kelantan State government by this week.

He was replying to questions by Kelantan Members of Parliament on whether the Government has plans to land gas procured in said blocks in Pantai Senak, Bachok, where residents have been paid compensation for procurement of lands in the area for further development, including to develop a downstream industry within the oil and gas sector.

Concurrently, Azmin also requested for the Kelantan State government to fast-track the official notice of withdrawal of suits against Petronas and the Federal government in relation to oil royalty claims in order to facilitate a “positive” negotiation on the oil royalty payment to the State.

Kelantan first brought up the issue of oil royalty in 2009, and filed a suit against Petronas and the State government in 2010. On Oct 24, Kelantan Menteri Besar Datuk Ahmad Yakob announced that the State had withdrawn the suit, although Azmin said today that the Government has not received an official notice.