Kuala lumpur: The Petroleum Development Act 1974 (Act 144) will continue to be in force under the existing legal provisions, as confirmed by Minister in the Prime Minister's Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said. She reiterated that Petronas retains ownership and exclusive rights to explore and acquire petroleum resources, both onshore and offshore in Malaysia, as stipulated under Act 144.
According to BERNAMA News Agency, Azalina addressed these points in a written response to an oral question posted on the Parliament website. Her remarks were in response to Hassan Abdul Karim (PH-Pasir Gudang), who sought clarity on the Federal Government's commitment to defending Act 144 amidst challenges from the Sarawak Government and Petroleum Sarawak Bhd (Petros) regarding the status of Petronas under the Act.
Azalina also mentioned that Petronas has entered into significant agreements to bolster collaboration with oil-producing states. These include a Commercial Collaboration Agreement with the Sabah state government and a Commercial Settlement Agreement with the Sarawak state government, outlining the framework for commercial cooperation with state-owned entities such as SMJ Energy and Sabah Energy Corporation in Sabah, and Petros in Sarawak.
She further explained that the varying landscapes of the oil and gas industry, coupled with state government policies, have led to different cooperation structures concerning ownership, revenue, and profit distribution. This was in response to a query from Isnaraissah Munirah Majlis (Warisan-Kota Belud) about the differences in these aspects between Petronas-SMJ Energy and Petronas-Petros agreements.
Azalina identified key factors influencing these structural differences, including the level of equity participation by SMJ Energy and Petros in sector projects and the strategic cooperation models established with Petronas. She noted that while Petronas' approach with Sabah and Sarawak is grounded in inclusiveness and shared values, the practical implementation and results could differ based on the industry landscape.