Petronas in bid to claim all Malaysian petroleum resources

PETALING JAYA: Petroliam Nasional Bhd (Petronas) has filed an application before the Federal Court for it to be named the exclusive owner of the petroleum resources as well as the regulator for the upstream industry throughout Malaysia, including in Sarawak.
The news comes as Sarawak, which remains under the Barisan Nasional rule post GE-14, looks to wrest power over upstream and downstream operations and activities of the oil and gas (O&G) industry there from July 1.
Chief Minister Datuk Patinggi Abang Johari Tun Openg announced in March 2018 that state laws had been changed to allow Sarawak assume full regulatory authority over the upstream and downstream operations and activities of the oil and gas (O&G) industry by July this year.
Petronas in a statement released on its website today, said it is now seeking for a declaration on the Petroleum Development Act 1974 (PDA) being the law applicable for the petroleum industry in Malaysia.
The oil and gas multinational said the determination by the Federal Court would help provide clarity on its rights and position under the PDA.
Petronas said it remains committed to support Sarawak's aspiration to participate in the oil and gas industry in the state, for as long as it is within the framework of the PDA.
It was reported that the Sarawak state cabinet had approved a bill to amend the Sarawak Oil Mining Ordinance 1958 to update the provisions and provide for better enforcement in the next session of the state legislative assembly in July.The Gas Distribution Ordinance 2016 will come into force on July 1 this year.
According to the Malaysian Energy Information Hub, in 2016 Sarawak held 27% of the country's 5.0 billion barrels of reserves of crude oil and condensates.
Sarawak established Petroleum Sarawak Bhd (Petros) in August 2017 and appointed Saau Kakok as its CEO on March 6, 2018.