Petronas maintains it has sole ownership of country’s petroleum resources

PETALING JAYA: Petroliam Nasional Bhd (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, adding that it will take its cue on the way forward from its sole shareholder, the Pakatan Harapan-led government of Malaysia.

In a statement issued yesterday, the national oil company said that it maintains its previous stance and will be closely monitoring the developments.

“We refer to the press statement on July 1, 2018 by the Office of the Chief Minister of Sarawak on the Sarawak Government’s intent to exercise its power under relevant state laws relating to oil and gas activities in the State. Petronas maintains that it has exclusive owner- ship of the petroleum resources in Malaysia and is the sole regulator of the upstream sector in the country,” it said.

“Moving forward, Petronas will closely monitor the situation, including seeking views and guidance from the Government of Malaysia, being the sole shareholder of Petronas, in carrying out our duties,” it added in its statement.

Petronas failed in its attempt to get the Federal Court to rule it as the exclusive owner of the petroleum resources as well as the regulator for the upstream industry throughout Malaysia, including in Sarawak, on technical grounds in June.

Petronas’ statement comes a day after the state government, led by the four-party coalition Gabungan Parti Sarawak, announced that it would be exercising full regulatory authority over oil and gas industry related activities for the state from July 1.

The four parties left the Barisan Nasional coalition after the 14th general election that was held on May 9.

The state government said in a statement on Sunday, however, that oil and gas players operating in Sarawak could go about their business as usual until the end of 2019, as it gathers “the necessary information from all industry players, as well as more detailed and comprehensive engagement with them”.