STATE TO WITHDRAW OIL ROYALTY SUIT AGAINST FEDERAL GOVT

KUALA TERENGGANU, Aug 25 (Bernama) -- The east coast state of Terengganu
government will withdraw its oil royalty suit against the federal government
after discussions on several matters have been concluded.

Chief Minister Ahmad Said said it was at the final stage of discussion
with national petroleum company Petronas before the federal government agreed to
return the management of oil royalty to the Terengganu government.

"Discussions to return the management of oil and gas royalty to Terengganu
are ongoing as we have not agreed on some small matters.

"That is why we have yet to withdraw the suit. When it is settled, only then
the oil royalty will be handed over to the Terengganu government," he said to a
supplementary question in the state assembly here Tuesday.

The suit against the federal government was filed by opposition Islamist
Parti Islam SeMalaysia (PAS) in 2000 when it ruled Terengganu from 1999 to 2004.

Ahmad said the Terengganu government should have received over RM15 billion
(US$4.3 billion) in oil royalty directly from the federal government from 2000
until now.
-- BERNAMA