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.
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Posted by Wata
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.
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Posted by Wata
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.
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Posted by Wata
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.
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Posted by Wata
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.
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Posted by Wata
August 26, 2018
Dateline 2018-06-19, Offshore Technology:
The regulatory regime in Malaysia’s upstream sector, dominated by PETRONAS for 44 years as the combined National Oil Company (NOC) and regulator, may become more complex due to recent political developments.
Long-running calls for greater control of resources and revenues for oil-producing states have increased in the past few years. Even more impactful may be the outcome of a pending court case brought by PETRONAS against the Sarawak state government’s assertion of full regulatory control of the sector.
PETRONAS’ case against the Sarawak government is scheduled for a hearing on June 21, with a significant prize at stake. Sarawak holds most of Malaysia’s oil and gas reserves and is home to the country’s LNG liquefaction plants.
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Posted by Wata
August 25, 2018
For the historical books
Dateline 2018-06-19, The Edge:
PETROLIAM Nasional Bhd’s (Petronas) court challenge of Sarawak’s claim of regulatory authority over oil and gas activities in the state has sparked a barrage of political responses and an angry backlash.
There was an outcry over the perceived trampling of state rights over oil and gas wealth in Sarawak. Many also began to question Pakatan Harapan’s pre-election promise to increase oil royalty to 20%.
But court documents viewed by The Edge indicate that the national oil company is pursuing a more precise question: who is in charge of upstream oil and gas activities in Sarawak?
For Petronas, it is a question that needs an urgent answer because operational continuity and investor confidence, which are vital to attract future investments, are at stake.
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Posted by Wata
August 20, 2018
Dateline 2018-06-17, FMT:
Sarawak will use documents related to the 1963 Malaysia Agreement which were found in London last year as a reference in its fight for rights to oil and gas produced in its territory.
State Law, State-Federal Relations and Project Monitoring Assistant Minister Sharifah Hasidah Sayeed Aman Ghazali said the documents, discovered by a team of lawyers which she led, could serve as evidence on the state’s rights.
“We will definitely use the documents that we obtained in London; they are certified true copies not just photostated. These will be used to assist us as evidence later in court,” she said when asked about Sarawak’s preparations in facing Petronas’ attempt in the Federal Court to seek a declaration that the Petroleum Development Act 1974 was also valid for the petroleum industry in Malaysia.
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Leave a Comment » | Malaysia, Malaysian election, oil and gas | Tagged: 1963 Malaysia Agreement, Sarawak, Sharifah Hasidah Sayeed Aman Ghazali | Permalink
Posted by Wata
August 16, 2018
Dateline 2018-06-13, FMT:
It was reported on June 5 that Petronas had gone to court to seek a declaration that under the Petroleum Development Act 1974 (PDA), the national oil company had exclusive rights over oil and gas resources in Malaysia.
Petronas’ move is in response to Sarawak’s announcement on March 7 that it had assumed full control of oil and gas resources within its territorial boundaries.
The legal test initiated by Petronas is shaping up to become a battle royale between a corporate body and a founding state of Malaysia.
After the Cabinet meeting on June 6, Prime Minister Dr Mahathir Mohamad said the federal government would leave it to the court to decide on the dispute between Sarawak and Petronas, clearly washing his hands over what could be a tenacious battle between federal and state rights.
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Posted by Wata
July 24, 2018
Dateline 2018-07-10, Borneo Post:
Constitutional position
Sarawak boundaries
Article 1(3) FC stipulates that territory of Sarawak would be the territory immediately before Malaysia Day and Sarawak’s boundaries shall not be altered except by a law passed by the State Legislature.
State legislative powers to issue permits and licenses for prospecting for mines; mining leases and certificates. Sarawak government and not federal Parliament or the federal government has the executive powers to issue such permits, licenses or leases for petroleum exploration, prospecting or mining.
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Posted by Wata
Wata - Malaysian Oil and Gas Engineer 