KUALA LUMPUR, Oct 26 (AFP) - An opposition-ruled Malaysian state
government which has been stripped of oil revenues worth millions of
dollars says it had found new energy reserves which the federal government
cannot claim.
Abdul Hadi Awang, chief minister of the northeastern state of
Terengganu, said reserves had been found on land and in the coastal area,
where they stretched for 200 km (125 miles) according to early estimates.
"If the federal government claims ownership of offshore areas,
whatever is produced in the coastal area and on land belongs to the
state," Abdul Hadi was quoted late Wednesday by Bernama news agency as
saying in the state capital Kuala Terengganu.
He said a foreign company had shown interest in establishing a joint
venture with the state government to conduct oil and gas exploration in
the newly found reserves.
"When the amount of reserv!
es is determined, we will commence
discussions with the foreign company," he said.
The chief minister gave no information on results of preliminary
studies but indicated that the reserves could be sizeable, Bernama said.
The opposition Parti Islam SeMalaysia (PAS) seized control of the
state in elections last November in a bitter blow to Prime Minister
Mahathir Mohamad's nationally ruling party.
The federal government last month seized control of annual oil
payments which previously went directly to the state government, sparking
a storm of protest.
Kuala Lumpur said the state had no legal right to oil royalties
since its existing oil was too far offshore and the annual payment from
national oil firm Petronas had always been a "goodwill contribution."
The federal government said it would spend the money directly to
help the people of the state. Op!
position parties have accused it of trying
to undermine the Terengganu administration.
This year's oil payment, swelled by high world prices, will be worth
an estimated 810 million ringgit (213 million dollars).
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