Oil and gas companies operating in the Malaysian state of Sarawak must apply for licenses from the state by the end of next year, according to a July 1 statement from Chief Minister Datuk Patinggi Abang Johari Tun Openg.
Until then, companies may conduct business as usual, meaning under agreements with the country’s state-owned Petronas, the statement said.
“As for state laws which are already in force like the Oil Mining Ordinance 1958 and the Land Code 1958, the relevant authorities will also begin the process of ensuring compliance with these laws, including gathering the necessary information from all industry players, as well as a more detailed comprehensive engagement with them,” the statement said.
“The state (Sarawak) accepts that this process will take time, and that is why the industry players would be permitted to conduct their business and operations as usual up to the end of 2019 and at the same time, taking the necessary steps to ensure compliance with the state laws.”
Sarawak last month won a decision against a Petronas request that a federal court declare it to be the country’s sole owner of hydrocarbon resources and industry regulator.
Petronas argues that the Petroleum Development Act of 1974 makes it the country’s only resource owner and regulator.
In response to the Sarawak chief minister’s statement, Petronas said it maintains its position and will seek “views and guidance from the government of Malaysia, being the sole shareholder of Petronas, in carrying out our duties.”
Earlier, Petronas said last month’s court decision “does not in any way impair Petronas’s ability to further pursue its legal actions, with the intent to seek clarity on its rights and position under the PDA 1974.”
