KUCHING, April 13 2018 : The Sarawak government has officially notified Petroliam Nasional Bhd (Petronas) that it must get the necessary licences from the state in order to develop the oil and gas industry within its territory.
Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg said companies or any parties that were interested to operate in the state must comply with the requirement enshrined in the Sarawak Oil Mining Ordinance 1958 and the regulations.
“They (Petronas Cari Gali Sdn Bhd, Sarawak Shell Bhd and Sapura Exploration and Production-Sarawak) entered into contracts among them before we know about our rights to oil and gas production in Sarawak as stipulated in the Sarawak Oil Mining Ordinance,” he told a news conference here today.
Abang Johari earlier witnessed the signing ceremony of the 15 per cent equity acquisition agreement of Shell Gas Holdings (Malaysia) Limited in Malaysia LNG Tiga Sdn Bhd (MLNG Tiga).
He said Petronas had been informed through an official letter to obtain a licence from the state government in order to operate legally.
The compliance of the ordinance is important as the Sarawak government has to regulate the state’s oil and gas industry, he added.
Abang Johari said it was not totally Petronas’ fault as Sarawak was not aware that it had rights to oil and gas production in the state as stipulated in the Sarawak Oil Mining Ordinance 1958.
He said the state government was not ignorant about its rights before, but they could have been overlooked.
Abang Johari was commenting on Sapura Energu Bhd’s statement, saying its subsidiary, Sapura Exploration and Production along with Petronas Cari Gali and Sarawak Shell would be developing SK408, Gorek, Larak and Bakong blocks located offshore Sarawak.
Sapura Energy said it had taken final investment decision (FID) to develop Phase 1 of the SK408 Production Sharing Contract following the approval of the field development plan from Petronas and the signing of major terms of gas sales agreement. – Bernama