Sarawak to implement regulatory rights on oil, gas beginning July 1

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BEGINNING July 1, Sarawak will implement regulatory rights on oil and gas activities in the state, said Chief Minister Abang Johari Openg.

He said this following the federal court’s dismissal of Petroliam Nasional Bhd’s (Petronas) application for leave to commence proceedings against the Sarawak government’s move to regulate the state’s petroleum activities.

Abang Johari said the state government’s move was in accordance with the law stipulated in the federal constitution.

“This means that some of the powers under the Oil Mining Ordinance (OMO) 1958 will be implemented by Petros (Petroleum Sarawak Bhd),” he said.

Yesterday, Chief Judge of Malaya Ahmad Maarop dismissed Petronas’ application after deciding that the federal court could not hear the matter, as the declaratory relief sought by the national oil company was not covered under the jurisdiction of the federal court, but the high court.

Abang Johari said only the Sarawak government had the rights to regulate the oil and gas activities from the point of law as stipulated in the federal constitution.

When asked if Petronas needed to apply for a permit or permission from Sarawak to be involved in oil and gas activities in the state hereafter, he replied: “What is happening now is that we have the state law that Petronas must abide to.”

Sarawak would not create a difficult environment with abnormal conditions for the oil and gas industry in the state, and would ensure that it continued to run smoothly, he said.

Abang Johari said Sarawak’s next state legislative assembly sitting would table the bill to amend OMO 1958, as some of the matters in the ordinance were no longer relevant with the current situation. – Bernama, June 23, 2018.

Source: https://www.themalaysianinsight.com/s/56436

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