What legal steps remain before Kelantan gets oil royalty?

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Legal Procedures Pending for Kelantan's Oil Royalty Payment

The Kelantan state government is awaiting the completion of all legal procedures by the federal government concerning the withdrawal of an oil royalty lawsuit against Petroliam Nasional Berhad (Petronas) before receiving its due payments. While a specific date for the royalty disbursement has not been provided, the Mentri Besar, Datuk Ahmad Yakob, expressed confidence that the federal government will fulfil its commitment. The timeline for this payment has been affected by ongoing legal processes.
Withdrawal of Lawsuit Against Petronas

The primary outstanding legal step involves the finalisation of the withdrawal of the lawsuit initiated by the state against Petronas. This action is a prerequisite for the disbursement of the oil royalties. The federal government has indicated that the royalty payment would be made once these suits were concluded.
Impact of Case Remmention on Payment Schedule

The federal government has postponed the royalty payment due to a "remmention of the case" related to the withdrawal of the suit against Petronas. This legal re-evaluation or recommencement of proceedings, expected in September, has caused further delays in the anticipated April payment. This situation underscores the procedural complexities that can influence the timing of such financial settlements.
Historical Context of the Oil Royalty Dispute

The dispute over oil royalties between Kelantan and the federal government has a history, though specific details of this historical context are not elaborated upon. However, the current situation highlights a commitment from the federal government, under Prime Minister Tun Dr Mahathir Mohamad, to address the matter. The Minister of Economic Affairs, Datuk Seri Mohamed Azmin Ali, had previously stated the intention to pay the royalty, indicating a continued dialogue and effort towards resolution.

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What legal steps remain before Kelantan gets oil royalty?

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