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.


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.

Malaysia’s top court dismisses Petronas’ bid to challenge Sarawak’s control over oil

September 5, 2018

Linkbait and the historical record.

Dateline 2018-06-22, Straits Times:

Malaysia’s top court on Friday (June 22) turned down Petroliam Nasional’s (Petronas) application for leave to proceed with its bid to control oil resources and activities in Sarawak state.

National oil company Petronas had last month filed legal papers in the Federal Court seeking a declaration that it is the exclusive owner of the petroleum resources in the country, including in Sarawak state.

This came after Sarawak was granted complete mining rights over its territory in March by the federal government and formed its own oil and gas company, Petros.

Shell completes Malaysia LNG Tiga equity sale

August 27, 2018

Dateline 2018-06-20, Oil & Gas Technology:

Shell Gas Holdings (Malaysia), a subsidiary of Royal Dutch Shell, announced today that it has completed the sale of its 15 per cdent shareholding in Malaysia LNG Tiga Sdn Bhd (MLNG Tiga) to the Sarawak State Financial Secretary (SFS) for an agreed consideration of $750 million.