Thursday, March 11, 2010

Ku Li: PDA supercedes all pre-Merdeka oil contracts

Kelantan’s oil royalty champion, Tengku Razaleigh Hamzah said today that Sarawak’s oil royalty may have been arranged when it was still a British colony but as it is now a part of Malaysia, it is subject to the rules laid down in the Petroleum Development Act (PDA) 1974.

The Kelantan prince was responding to a statement from former Sarawak Chief Minister Tun Abdul Rahman Yakub who in an enclusive interview with The Malaysian Insider yesterday claimed the Borneo state’s cash payments from the federal government were a result of a 1954 declaration by Queen Elizabeth II that its territorial waters were not limited to only three nautical miles from its coast.

“He’s right,” Razaleigh replied when asked if he agreed with Abdul Rahman.

But, he added quickly that the arrangement was no longer binding on the federal government.

Sarawak, together with its sister Borneo state, Sabah, joined the peninsular to form the Federation of Malaysia in 1963.

“The Petroleum Development Act supercedes all previous laws and Acts,” Razaleigh stressed.


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