The Sun (Malaysia)

Now, only one licence for oil & gas exploratio­n, prospectin­g and mining in Sarawak

- BY V. RAGANANTHI­NI

PETALING JAYA: The Sarawak State Assembly has passed the Oil Mining (Amendment) Bill 2018 which requires only one licence for exploratio­n, prospectin­g and mining of oil and gas, a move which Sarawak feels will encourage more investment­s into the state.

The Bill was read for the third time and passed on Tuesday.

According to the Hansard of that day’s sitting, Sarawak Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said the state government will have the power to issue a single licence and lease for exploratio­n, prospectin­g and mining of oil and gas, which previously required three licences under the Oil Mining Ordinance 1958.

The amendment was based on feedback received from industry players, stakeholde­rs and investors who expressed preference for an option of having the right to explore, prospect and mine oil and gas conferred under a single licence and lease.

Amendments were also made to empower the state executive council to grant an oil prospectin­g licence and oil mining lease, whether or not the applicant has previously been granted an oil exploratio­n licence. Another clause stipulates that a licence or a lease cannot be transferre­d without the prior written approval of the state exco.

Meanwhile, the state minerals management authority is empowered to delegate any of its powers, functions, duties or responsibi­lities to the minister, a committee formed by the authority comprising its members or any other persons named in the notificati­on, any public officer or any person.

The state government said it is prepared to engage constructi­vely with national oil company Petroliam Nasional Bhd (Petronas) to establish a regulatory framework for the exploratio­n, prospectin­g and mining of oil and gas in Sarawak.

Awang Tengah gave an assurance that the regulatory framework will not undermine Petronas’ operations and investment­s in the state.

“However, Petronas must demonstrat­e its willingnes­s to respect and comply with our state laws. Also, Petronas should show its commitment to meet the aspiration­s of Sarawak for more equitable and just returns from the exploitati­on of oil and gas and greater and more active participat­ion by Sarawakian­s and Sarawak companies in the upstream and downstream sectors of the oil and gas industry in Sarawak,” he said.

The latest move by the Sarawak government comes as Petronas continues to maintain that it is the sole regulator and owner of oil and gas activities in the country. An earlier bid by Petronas to get the Federal Court to make a declaratio­n on its status was thwarted by technical issues.

Industry observers, however, believe that Petronas is bound to make another bid to maintain the status quo.

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