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a little of what I know about the oil issue in kelantan ;
If you want to understand the situation of the people and royalty claims the State Government, why we are clear on basic matters relating to the petroleum, sealed an agreement involving petroleum, gas and natural resources and the political uproar that has resulted in bertukarnya status courtesy of royalties to the fund
Some important facts that the people of Kelantan and Malaysia need to know is
Indonesia has the gas and oil in South China Sea coast. The areas involved OnShore and offshore waters, coastal waters in several states such as Sabah, Kelantan and Terengganu
Kelantan, a state which is about more than 14.922 square km, located in the east of Peninsular Malaysia, facing the South China Sea and is bordered by Thailand also has a beach outside the boundary waters (offshore)
Offshore words contained in the agreement between Petronas and the State Government as specified in the Convention of the United Nations in 1982 means;
- territorial sea is 22 km from land
- Contagious zone which is 44km from the mainland
- exclusive economic zone of 370km from the mainland
Therefore, any petroleum products that were found and collected offshore (offshore) is owned by one of any State 13 until the ownership submitted by the State Government to Petronas, signed contracts on 144 of the Petroleum Development Act 1974
There are also areas of overlap yan Malaysia and Thailand, which has produced oil and gas since a few years. This area is designated as the Joint Development Area
In the Joint Development Area, the two countries agreed to develop bermodelkan overlapping areas Australia-Indonesia where they are in accordance with the laws enacted in parliament respectively
Malaysia has formulated the act Malaysia-Thailand Joint Authority Act 1990 to administer the area this Joint Development Area. Through this act, Malaysia has full authority over the area in Joint Development Area and the Federal Constitution is the Supreme Law
440 of the Act also guarantees the right of the waters of the State as a state that has territorial waters in the Joint Development Area
Third. Joint Development Area (Joint Development Area-Malaysia-Thailand overlapping areas) has an area of 7250 square km and is divided into three blocks
The distance is from;
- Songkhla 260 km
- Pattani 280 km
- Kerteh 310 km
- Kota Bharu 150 km (Kota Bharu is the nearest)
Estimated, the Joint Development Area is to generate gas production of 790 million cubic feet per day, equivalent to 248 trillion cubic feet a year, giving the value of more than RM 4 billion a year. While 23.000 barrels of oil a day out in time
Stated in Act 440 Part IV:
Royalty
Seventh. The Joint Authority shall pay to each of the Governments
Royalty in the amount of five per centum of gross production of petroleum, in the manner and at such times as may be prescribed by Regulations
FINANCIAL PROVISIONS
Cost, benefits and annual payment 8. (A) All costs incurred and benefits derived by the Joint Authority from activities carried out in the Joint Development Area shall be equally borne and shared by the Governments. Malaysia-Thailand Joint Authority 11 (2) until such time as the Joint Authority shall have sufficient funds to finance its annual operational Curse, the Government of India shall pay to the Fund also known as annual payments may be determined in accordance with the Agreement subject to Equal Payments being made by the Government of the Kingdom of Thailand. (Source: Parliament of Malaysia) 5. However, what happens now?
So far, there are also blocks of the State bordering the State has issued revenue. However, only the City get paid royalties. The Government also tried to deny the right of the Government of Kelantan have claimed that the PM3 is the overlapping area between Malaysia and Vietnam. · The natural gas operations in the area of the Lawit PM303 and Jerneh (between Kelantan and Terengganu), but also out of royalties is paid to the State Government
