Petronas’ statement arrogant, insensitive, says Abdul Karim

September 18, 2018

Dateline 2018-07-04, Borneo Post:

The recent press statement from Petroliam Nasional Berhad (Petronas) is described as a strongly-worded statement that is both arrogant and insensitive.

In the statement, Petronas maintains its claim over Sarawak’s oil and gas resources; that it has exclusive ownership of the petroleum resources in Malaysia, and that it is the sole regulator of the upstream sector in the country.

Minister of Tourism, Arts, Culture, Youths and Sports Datuk Abdul Karim Rahman Hamzah said the statement did not bode well with Sarawak and its people, and wondered if this was a new form of colonisation.


Petronas maintains it has exclusive ownership on petroleum resources

September 16, 2018

Dateline 2018-07-02, FMT:

Petronas maintains that it has exclusive ownership of the petroleum resources in Malaysia and is the sole regulator of the upstream sector in the country.

It said this in reference to a press statement by the Sarawak chief minister’s office yesterday on the state government’s intent to exercise its power under the relevant laws relating to oil and gas activities in the state.

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.

 


Sidek Hassan retires as chairman of Petronas

September 15, 2018

For the historical record:

Dateline 2018-07-02, Business Times:

PETRONAS, Malaysia’s national oil company (NOC) confirmed on Monday that Sidek Hassan has stepped down as chairman of its board.

Petronas  stopped short of identifying Mr Sidek’s successor though Malaysian media have earlier speculated that Hassan Marican – now chairman of Sembcorp Marine, Singapore Power and Pavilion Energy – may return to helm the NOC’s board.


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.

 


The legal deadlock over Sarawak’s oil and gas

September 9, 2018

Dateline 2018-06-24, Malaysiakini:

On Friday, the Federal Court dismissed Petronas’ application for leave to challenge Sarawak’s aspirations to reassert regulatory control over its own oil and gas.

The Federal Court also struck out Petronas’ application for an order preserving the status quo which, at least for now, appears to enable Sarawak to proceed with its intention of implementing its own oil and gas regulatory regime by July 1.

As much as we welcome it, Sarawakians must be cautious in embracing the Federal Court decision.

Petronas’ leave application was dismissed solely on the grounds that the declaratory relief sought did not come within the exclusive original jurisdiction of the Federal Court.


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.


Massive management changes in Petronas unnecessary: Analysts

September 7, 2018

Dateline 2018-06-22, NST:

 Petroliam Nasional Bhd (Petronas) has performed respectably well during the recent volatile oil price environment and should not undergo massive management changes, analysts said.

Last year, Petronas recorded higher net profit of RM45.5 billion, after having gone through the steepest decline in oil price since June 2014, proving its resilience while remaining profitable, they said.

These comments come amidst recent changes in top management of government linked companies (GLCs) following the change in government after the 14th General Elections, and speculation of more to come.

Following the change of government since last month, government-linked and owned companies with their top leadership have become a hot topic of late among the public, following the stunning victory of Pakatan Harapan at the recently held polls.

While several GLCs have come under scrutiny and have seen management changes recently, other state-owned enterprises continue to focus on improving their businesses while at the same time distancing themselves from any controversies.