Kelantan Deputy Menteri Besar Mohd Amar Nik Abdullah has rejected Prime Minister Dr Mahathir Mohamad's offer of 20 percent royalty on oil profits made in the state.

Instead, Amar stressed, Kelantan is demanding five percent royalty on total oil production in the state.

He said the federal government basing the calculation on profits instead of production could see volatility in the amount of royalty granted to Kelantan...