Petronas maintains it owns all petroleum resources in Malaysia

0

KUCHING: Petroliam Nasional Berhad (Petronas) is not giving up on the exclusive ownership of the oil and gas resources in Sarawak.

In a strongly-worded press statement to maintain its claim over Sarawak’s oil and gas resources, Petronas said it has exclusive ownership of the petroleum resources in Malaysia. It also said it is the sole regulator of the upstream sector in the country.

“Moving forward, Petronas said it would closely monitor the situation, including seeking views and guidance from the federal government, being the sole shareholder of Petronas, in carrying out its duties,” the statement said.

The press statement was issued to in response to the Chief Minister’s Office’s July 1 press statement on its intent to exercise its power under the relevant Sarawak laws relating to oil and gas activities in Sarawak.

All companies including their contractors, sub-contractors and vendors in the oil and gas industry have to apply for licences from the Sarawak government in order to operate in Sarawak effective July 1. They are required to do so under the Sarawak Oil Mining Ordinance (OMO) 1958, and other regulations.

The OMO stipulates that all oil and gas industry players in Sarawak, including Petroliam Nasional Berhad (Petronas), should comply with it.Legal and appropriate action will be taken against those who fail to comply with the Ordinance, and this should include the upstream activities carried out by Petronas.

Application for licences must be made in a form prescribed in OMO and submitted to the Sarawak Minerals and Management Authority (SMMA) through Petroleum Sarawak Bhd (Petros).

Chief Minister Datuk Patinggi Abang Johari Tun Openg has emphasised the necessity of enforcing OMO given that the rights enabling oil and gas industry players to operate in Sarawak belong to the Sarawak government.

Under the new regulation, Petronas must only deal with Petros to produce or extract oil and gas from beneath land within Sarawak’s boundaries.

Related News: Petronas maintains its exclusive ownership