Chong questions consistency of Oil Mining (Amendment) Bill

September 28, 2018

Dateline 2018-07-11, Borneo Post:

KOTA Sentosa (PH-DAP) assemblyman Chong Chieng Jen has questioned the consistency of the Oil Mining (Amendment) Bill, 2018, and wants the conflict of law issue be resolved.

He said by looking into the Bill, there are likely to be inconsistency in terms of regulation that will be formulated by Sarawak against the existing regulation that was regulated by Petronas pursuant to the Petroleum Development Act (PDA) 1974.

He said in light of that inconsistency to the amended Oil Mining Ordinance (OMO), the PDA would prevail over it.

“By tabling and passing the Bill today in this august House, let the people of Sarawak not be deceived that we are claiming ownership of the oil and gas resources.

“At the most, what you are going to claim is the power to regulate the industry while ownership still remains in Petronas.

Sarawak to give its oil law more bite

September 19, 2018

Dateline 2018-07-04, Malay Mail:

he Sarawak Oil Mining Ordinance 1958 (SOMO) seeks to bar any company or person from building, erecting and decommissioning any mining structure within Sarawak’s territorial boundary, unless authorised in writing by the State Minerals Mining Authority.

A maximum penalty of RM250,000 or an imprisonment of three years or both upon conviction await any person or company who fails to comply with the provision.

This is one of the provisions to be included in the Sarawak Oil Mining Ordinance 1958, which will be tabled for amendments at next week’s sitting of the Sarawak State Assembly.

Sarawak starts exerting control over oil and gas

September 14, 2018

Dateline 2018-07-01, Malay Mail:

The Sarawak government today began exercising its powers over the oil and gas industry, but said it will give industry players until the end of 2019 for full compliance.

A statement issued by the Chief Minister’s Office said oil and gas industry players are required to comply with the Gas Distribution Ordinance 2016, Oil Mining Ordinance (OMO) 1958 and Sarawak Land Code (SLC) 1958.

The Gas Distribution Ordinance, which comes into force today, requires all activities related to gas distribution or within the distribution system for supply and delivery to be licensed by the state through the director of Gas Distribution.

These activities include the import of liquefied natural gas into Sarawak, regasification, treatment and the separation and processing.


Testing time for Petronas

September 12, 2018

Dateline 2018-06-30, NST:

THE Sarawak government is expected to enforce the Oil and Mining Ordinance 1958 (OMO 1958) tomorrow after Petroliam Nasional Bhd (Petronas) was denied leave to commence legal proceedings to seek a declaration on the Petroleum Development Act 1974 (PDA) being the law applicable for the petroleum industry in Malaysia.

Petronas is seeking a declaration that it is the exclusive owner of the petroleum resources and the sole regulator for the upstream industry in Malaysia while the state government is seeking to regulate the oil and gas (O&G) industry based on its laws — OMO 1958, the Land Code of Sarawak and the Gas Distribution Ordinance 2016.

The national oil company believes that the determination by the Federal Court would help provide clarity on its rights and position under the PDA.

Legal firm Azmi & Associates partner Zuhaidi Mohd Shahari said Petronas’ authority as the regulatory body in petroleum and gas in Malaysia as provided for under PDA1974 had never been really contested.

“What Petronas did was to seek declaration that the PDA supersedes the Sarawak state laws on mining. Unfortunately, the Federal Court did not grant (permission) for that suit to be heard by the Federal Court.


Not necessary to file case over O&G rights in High Court, says Abd Karim

September 10, 2018

And.. it’s a slow news cycle.

Dateline 2018-06-25, Borneo Post Online:

The Sarawak government does not have to file a case in the High Court to reclaim its rights over oil and gas in the state, said Tourism, Arts, Culture, Youth and Sports Minister Datuk Abdul Karim Rahman Hamzah.

He pointed out that this is because Sarawak has its own special law that’s applicable in the state, namely the Oil Mining Ordinance (OMO).

“We have always felt that the OMO can still be used. But on the other side, Petronas feels that the OMO has already been repealed when the Petroleum Development Act (PDA) 1974 was introduced.

“So, why should we be the one to bring the matter to court when the aggrieved party, those who feel that the OMO is not applicable is Petronas?” he questioned when asked to comment on whether the Sarawak government should file a case in the High Court if it is serious about reclaiming its rights over oil and gas in Sarawak.


O&G players see impact from new industry updates

July 1, 2018

Dateline 2018-05-17, Borneo Post Online:

With just two more months before Sarawak state-owned Sarawak Petroleum Bhd (Petros) assumes full regulatory authority over the upstream and downstream aspects of the state’s oil and gas (O&G) industry, existing industry players are wondering if their business activities will be impacted.

During an industry engagement session on the implementation of the Oil Mining Ordinance (OMO) and Distribution of Gas Ordinance (DGO) in Sarawak held yesterday, Petros’ chief executive office Saau Kakok explained that most, if not all, entities undertaking activities in the O&G industry will need to apply or reapply for their respective licenses and leases.

Under the amended OMO which will come into effect on July 1, players will be required to apply for their licenses and leases to the State Minerals and Management Authority (SMMA) through Petros.

Similarly, under the newly passed GDO in 2016 which will be gazette on July 1, players will be required to reapply for their licenses as licenses granted under the gas supply act 1993 is not applicable in the state. This includes any licenses issued by the Secretary General of Ministry of Domestic Trade, Co-operatives and Consumerism under the Petroleum Regulations 1974 or the Control of Supplies Act 1961.