DAP: Sarawak must bring 2 Acts on oil and gas rights to court

May 12, 2018

Dateline 2018-03-10, FMT:

A Sarawak DAP leader says the only way for Sarawak Chief Minister Abang Johari Openg to redeem himself following his claim that the Petroleum Development Act 1976 (PDA) and the Territorial Sea Act 2012 (TSA) are null and void is by taking the issue to court.

Irene Mary Chang, who is Sarawak DAP director of women’s affairs’ bureau, said it was wrong of Johari to say that these two laws are not applicable in Sarawak anymore following his announcement on Tuesday that the state would assume full regulatory authority over the upstream and downstream aspects of the oil and gas industry in Sarawak.

“To declare these two legislations as null and void and therefore have no application in Sarawak, the CM has to first bring the matter before the Courts of Law for such a declaration.

“And until the Courts declare as such, the acts are in force and are applicable in Sarawak. To say otherwise is to give people false hope and the state government owes it to the people to set the matter right,” she said.

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Business as usual for O&G firms in Sarawak for now

May 10, 2018

Dateline 2018-03-13, Malaysian Reserve:

Oil companies operating in Sarawak are expected to abide by the agreements signed with Petroliam Nasional Bhd (Petronas) for oil and gas (O&G) activities, despite the East Malaysia state’s hydrocarbon resources ownership claims.

Under the Petroleum Development Act 1974 (PDA), oil exploration and hydrocarbon related activities will require the approval from the state-owned energy company.

But resource-rich Sarawak’s announcement to assume control over its natural resources has triggered questions over the past approvals received by oil companies. Petronas is believed to have some 60 oilfields in Sarawak with an average production capacity of 850,000 barrels a day, either produced by the energy company or through production sharing contracts (PSCs).

Petronas partners exploration and production (E&P) companies like Royal Dutch Shell plc, JX Nippon Oil and Gas Exploration Corp, and Murphy Oil Corp. Shell was the first company to explore O&G in Sarawak.

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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.

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Sarawak’s Humble Journey In The O&G Industry

May 5, 2018

Dateline 2018-03-07, MalaysianDigest:

Sarawak’s humble journey in the oil and gas (O&G) industry started with the commissioning of the first oil well, known as the “Old Lady” in Miri, on Dec 22, 1910.

Sarawak’s first oil refinery was built by Shell at Tanjung Lobang, Miri, and subsequently moved to Lutong, Miri.

In 1920, the Rajah issued what was known as “the Shell Concession Order”, designating the area in Miri for the exploration and mining of oil by Sarawak Oilfields Limited, owned by Shell.

In the 1930s, the Dutch and the British began their exploration for oil offshore Baram.

In 1952, the Sarawak colonial government issued an oil mining lease in the form of a deed to Sarawak Oilfields, giving the company the liberties, right and privileges to explore and mine all “the petroleum lying or within, under or throughout the territory comprising the colony of Sarawak, including lands beneath all territorial waters”.

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Sarawak gains full control over state’s oil and gas sector as Malaysia election nears

May 1, 2018

Dateline 2018-03-07, The Straits Times:

Sarawak announced yesterday that it now has complete mining rights over its territory, making it the first state in Malaysia to form a state-owned oil and gas company.

Sarawak Chief Minister Abang Johari Openg said the formation of Petros, which was founded last year, was part of the promise made by the federal government to return eroded rights from the Malaysia Agreement 1963 (MA63), signed when the giant state agreed to become part of Malaysia.

“This gives Sarawak full regulatory authority of the upstream, downstream aspects of the oil and gas industry,” said Datuk Abang Johari at an event to launch Petros in the Sarawak capital of Kuching.

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CM: Sarawak will exert mining rights

March 17, 2018

Dateline 2018-01-30, Malay Mail Online:

The Sarawak state government said it will exert its mining rights, including oil mining, despite Petronas having the legal right to explore and mine for petroleum in state territorial waters.

Sarawak Chief Minister Datuk Patinggi Abang Johari Openg said mining was part of the rights of Sarawak enshrined in the Federal Constitution.

He said the state government has also directed Petronas to consult the state on the utilisation of gas from any new fields.

“This is to ensure that Sarawak has the first right of refusal in using the new sources of gas for the development of our oil and gas industries as well as the development of other industries in Sarawak,” he said in his speech at the special sitting to mark the 150th anniversary of the state legislative assembly.

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Sarawak left out of new gas deal by Petronas

February 10, 2018

Ah, linkbait.

Dateline 2018-01-02, FMT:

It was reported last month that Petronas had awarded the new field development plan (FDP) of the Beryl gas field off the Sarawak coast in October 2017 to JX Nippon Oil & Gas Exploration (Nippon Oil).

So, the Japanese firm and Petronas Carigali will form another joint venture on the development, production and monetisation of Sarawak’s gas reserves.

It is uncertain how Petros, the newly-formed state entity formed by the Sarawak state government in June last year to participate in oil and gas activities, will participate or enjoy, if at all, any of the returns generated by the production and sale of the gas from the Beryl field development.

Likewise, for the gas produced from the other Nippon Oil and Petronas Carigali fields of Layang and Helang, situated adjacent to Beryl.

The gas produced in these three fields are piped and sold to the Petronas liquefied natural gas (LNG) plant in Bintulu, Sarawak.

Contrary to what the Sarawak state government had been saying earlier, it appears Petros has not announced any interest in this new gas block for development.

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Reject Territorial Sea Act restricting right over sea, Sarawak told

January 12, 2018

Yeah, tell Sarawak off.

Dateline 2017-11-18, FMT:

Sarawak PKR has called on the state government to reject the implementation of a law passed by Parliament in 2012 which limits the state’s sovereign right and jurisdiction over its surrounding seas, from within 12km from the coastline to just 3km.

Its vice-chairman See Chee How said the Territorial Sea Act 2012 (TSA) was unconstitutional as far as it affected the territorial boundaries of Sarawak and Sabah.

He said Sarawak should claim its full rights as specified under Article 1(3) of the Federal Constitution which stipulates that the territories of Sarawak, Sabah and 11 other states comprise areas they had jurisdiction over prior to Malaysia Day on Sept 16, 1963.

“The Federation cannot enact any law altering or affecting our territorial boundary unless Sarawak first passes a law in our legislative assembly to alter it,” he said.

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Get mining licences and leases, Sarawak tells Petronas

January 11, 2018

Dateline 2017-11-17, The Malaysian Insight:

IN the latest move by Sarawak to reclaim its constitutional rights, the state government has told Petronas to get the necessary mining permits in a move seen as exerting its mining rights.

Chief Minister Abang Johari Openg said even though the Petroleum Development Act 1974 (PDA) gave the national petroleum company the right to explore and mine for petroleum in Sarawak, the state still retains the right to issuing mining leases.

He said the rights are listed in the federal constitution.

“The power of the state to issue mining leases remains in the state list of the federal constitution.

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Sarawak sets sail for O&G push

October 31, 2017

Dateline 2017-09-16, Borneo Post:

AS Sarawak ushers in Malaysia Day, it is a crucial to remember its first milestone in the oil and gas (O&G) industry, which started in Miri 107 years ago.

The first Sarawak Oil Mining Lease was signed by Rajah Charles Brooke in London in 1909, followed by the send-off by Shell of its senior geologist Dr Josef Theodor Erb and former Baram Division Resident Dr Charles Hose to Miri in 1910.

The first exploratory well was drilled on Aug 10, 1910 using an oil rig engineered by a Canadian named McAlpine – the factor contributing to the place being named ‘Canada Hill’.

Oil flowed out two months later.

Sarawak Oilfield Ltd – a subsidiary of the Shell/Royal Dutch Group – was established to run the operations from Lutong. It was renamed Sarawak Shell Oilfield Ltd and later, Sarawak Shell Bhd – marking the company’s long association with Sarawak.

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