It is not an oil royalty

Did you all read or hear Prime Minister Najib Abdul Razak's claim that Kelantan is not entitled to oil royalty for the petroleum and liquefied gas extracted beyond the state's shores as state's waters was defined as waters located within three nautical miles from the low watermark or offshore. So there you go Kelantan and Terengganu, the payment that you receive is considered "Wang Ehsan" or 'compassionate payments' and not royalty.
If Kelantan and Terengganu are not worthy of receiving royalty then how about Sabah and sarawak as the oil production in Sarawak especially, is being conducted beyond the three nautical mile line? So will the government need to change it as ‘compassionate payments’ as the PM has reclassified the terminology!
The possible implication, could be that while oil royalty payments had to go directly to the Sabah and Sarawak state governments, ‘compassionate payments’ could instead be taken over and disbursed by federal government agencies which means that they will be at the mercy of the federal government.
According to the Petroleum Development Act 1974, 50 percent of the oil revenue from an oil-producing state is to be given to that state. I do hope that the leaders in Sabah and Sarawak do something about this or else it means that they are merely rubber stamps of the federal government. May be Sabah but sarawak with its CMS, not sureloh!