Friday 25 March 2011

Federal govt succeeds to intervene in Kelantan oil royalty suit

The Federal Government has succeeded in its bid to be an intervener in the suit filed by the Kelantan state government against Petronas over oil royalty.

In the intervener application, the Federal Government said that all disputed aspects could be deliberated and decided effectively if it was added as the second defendant.

Besides that, the Federal Government said it would be fair for all questions and issues of law raised in the claim to be decided between the Malaysian government and Petronas.

The Kelantan government had on Aug 30 last year filed a breach of contract and constitutional suit against Petronas over the oil giant's failure to pay the state oil royalty.