Sarawak party says state should claim ownership of its oil

May 1, 2020

Dateline 2020-03-14, Malay Mail:

After the High Court ruled that the state has the right to impose sales tax on petroleum products, the next step is for the state government to declare the ownership and economic rights over oil and gas resources, Sarawak People’s Aspiration Party (Aspirasi) stressed today.

Its president Lina Soo suggested this could be done by passing legislation in the State Legislative Assembly to repudiate the Petroleum Development Act (PDA) and Territorial Sea Act (TSA).

“Both the PDA and TSA have impinged upon Sarawak’s territorial integrity over our petroleum resources and territorial waters, and by not seeking a constitutional redress, our sovereignty will be compromised in acquiescence as silence will be taken to mean consent,” she asserted.

High time Sabah manages oil, gas resources more effectively, says minister

January 4, 2019

Ah, PETRONAS not doing its job?

Dateline 2018-11-17, Malay Mail:

Minister in the Prime Minister’s Department Datuk Liew Vui Keong said it is high time the new Sabah administration headed by Parti Warisan Sabah takes the necessary steps to manage its oil and gas resources more effectively.

He said the Petroleum Development Act 1974, for instance, needs to be reviewed and amended to enable the state government to have greater control in managing its own resources.

Royalty: Sabah was not consulted

October 18, 2018

Dateline 2018-07-27, Daily Express:

Deputy Chief Minister Datuk Seri Wilfred Madius Tangau expressed unhappiness with the Federal Government for deciding and announcing about oil royalty without first consulting oil producing states, including Sabah.

He stressed that the need for mutual agreement was clearly stated in the Petroleum Development Act 1974.

He was commenting on reports quoting Economic Affairs Minister Datuk Seri Mohamed Azmin Ali as saying that the Federal Government could not immediately implement its promise to pay 20 per cent royalty to oil-producing states as the PDA carries out calculation based on gross profit and not net profit.

He said the Federal Government will only implement its promise after amendments are made to the PDA 1974.

However, Madius suggested there is need to further discuss with Sabah on the matter.

20% oil royalty on profit, so wait for amendments to law, says Putrajaya

October 16, 2018

Dateline 2018-07-25, FMT:

The federal government will only implement its promise to pay 20% royalty to oil-producing states after amendments are made to the Petroleum Development Act 1974, said Economic Affairs Minister Mohamed Azmin Ali.

“It cannot be carried out immediately as the act carries out calculation based on gross profit and not net profit.

“Due to that, if the government wants to increase the oil royalty to 20%, it will take time as an amendment is needed,” Azmin (PH-Gombak) told Dewan Rakyat today.

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.

Petronas, Sarawak govt case hits snag, uncertainty rises after July 1

September 8, 2018

Dateline 2018-06-23, NST:

The court case between national oil company Petroliam Nasional Bhd (Petronas) and the Sarawak government, which could not proceed further on technical grounds, raises questions about oil and gas operations in the state beginning next month.

Yesterday, the Federal Court rejected Petronas’ application for stay order on Sarawak government’s upstream regulation in the state under the Oil Mining Ordinance 1958 (OMO) beginning July 1.

Petronas said in a statement that its application was declined based solely on technical grounds and it was ruled that the matter falls outside of the Federal Court’s jurisdiction.

“The Federal Court did not in any way determine or endorse the merits of the legal position taken by the Government of Sarawak to regulate upstream petroleum activity under its Oil Mining Ordinance 1958,” Petronas added.

As such,the national oil  company intends to further pursue legal actions to seek clarity on its rights under the Petroleum Development Act 1974 (PDA 1974).

However, Sarawak is adamant to enforce its regulatory rights under the OMO. This would require Petronas to have the requisite licences or leases under the Ordinance by July 1, failing which the upstream activities carried out by Petronas would be illegal and appropriate action would be taken.

PH has urged Sarawak government to amend PDA

July 14, 2018

Dateline 2018-06-06, NST:

Sarawak Pakatan Harapan has urged the state government to amend the Petroleum Development Act 1974 (PDA).

Its chairman Chong Chieng Jen said if this was not done, the ownership and control of oil and gas industry in Sarawak would remain with Petroliam Nasional Bhd (Petronas).

He said the Chief Minister Datuk Patinggi Abang Johari Abang Openg had refused to do so and insisted that PDA was irrelevant in Sarawak.

“He (Abang Johari) has been saying the PDA is irrelevant and claimed that the state has the full regulatory authority over the upstream and downstream aspects of the oil and gas industry, with the establishment of the Petroleum Sarawak Berhad (Petros).


Has Sarawak been shortchanged?

July 13, 2018

You mean, has Sarawak been hoodwinked by a fly by night, quick fingered, sleight of hand working man?

Dateline 2018-06-06, Borneo Post:

HAS the PH government broken its promises to the people of Sarawak and Sabah vis-à-vis its Pakatan Harapan Book (Buku Harapan), outlining the four-party coalition’s election manifesto?

As events unfolded with the first bombshell dropped on Sarawak on Monday by Petronas in a suit, seeking legal redress to its oil and gas rights in the state, let us take a look specifically on petroleum rights.

First, let it be known that Petroleum Development Act 1974 (PDA 1974) empowers the Prime Minister to make regulations for the purpose of putting into effect the provisions of PDA 1974 in the conduct or the carrying on of any business or services relating to the explorations, exploitations, winning or obtaining of petroleum.

Malaysia’s national oil company files for declaration it owns all oil, including in Sarawak

July 9, 2018

Dateline 2018-06-04, Straits Times:

Malaysia’s national oil company Petroliam Nasional (Petronas) has gone to court for a declaration that it is the exclusive owner of the petroleum resources in the country, including in Sarawak state.

Petronas said on Monday (June 4) it had filed an application before the Federal Court seeking the declaration under the Petroleum Development Act 1974 (PDA), which governs the petroleum industry in Malaysia.

The application also seeks a declaration that Petronas is the regulator for the upstream oil industry throughout Malaysia, including in Sarawak.

Sarawak’s claim on oil resources could change sector’s dynamics

May 6, 2018

Dateline 2018-03-08,  The Malaysian Reserve:

The Sarawak government’s announcement that it is taking full regulatory control over its oil and gas (O&G) resources could change the dynamics of the sector which has been for more than four decades regulated under one law.

The Petroleum Development Act 1974 (PDA) gave the exclusive rights of exploring, exploiting, winning and obtaining petroleum, whether onshore or offshore in Malaysia, to state-owned oil company Petroliam Nasional Bhd (Petronas).

Resource-rich Sarawak announced it would assume full regulatory authority over the O&G industry upstream and downstream activities in the state by July this year.

The announcement was made by Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg when he launched Petroleum Sarawak Bhd (Petros) in Kuching on Tuesday.

Abang Johari was reported as saying that anyone and companies involved in the O&G industry in the state must have the necessary licences, permits, leases and approvals required either under the state’s Oil Mining Ordinance, or the Gas Distribution Ordinance.