This article first appeared in The Edge Financial Daily on July 3, 2018

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) has maintained its stance that it has exclusive ownership of the petroleum resources in Malaysia and is the sole regulator of the upstream sector in the country.

“Moving forward, Petronas will closely monitor the situation, including seeking views and guidance from the government, being the sole shareholder of Petronas, in carrying out our duties,” the national oil corporation said in a statement yesterday.

Petronas was responding to the statement made by the office of the chief minister of Sarawak on Sunday on the state government’s intention to exercise its power under relevant state laws relating to oil and gas activities in Sarawak.

According to the statement, the state government has effectively from July 1 begun exercising its power under the relevant state laws, including the Gas Distribution Ordinance 2016.  

As for the state laws which are already in force like the Oil Mining Ordinance 1958 and the Land Code 1958, the relevant state authorities would begin the process of ensuring compliance with these laws, including gathering the necessary information from all industry players as well as forging a more detailed and comprehensive engagement with them.

Acknowledging that the process might take some time, the chief minister’s office said industry players would be permitted to conduct their business and operations as usual up to the end of 2019 while at the same time taking the necessary steps to ensure compliance with the state laws.