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March 31, 2019 · 1 min read

Big changes are coming for Petronas and Sarawak and Sabah

Tom KirkmanIndependent Project Manager

I keep reiterating, again and again and again… big changes are in store this year for Petronas and the way that Petronas works with Sarawak and Sabah’s local natural resources of Oil & Gas.

Expect more updates this month.
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“The Government’s proposal to amend Article 1 (2) of the Federal Constitution to make Sabah, Sarawak and Peninsular Malaysia equal partners based on the Malaysia Agreement 1963 (MA63) is a good move as the people in the two states feel that they are being sidelined, said Universiti Malaya sociopolitical analyst Prof Dr Awang Azman Awang Pawi.

As partners, Sabah and Sarawak can negotiate directly with the prime minister on any strategic issue involving the interests of the two states.

… “Any discussions involving Sabah and Sarawak do not have to involve other states.

For example, about Petroliam Nasional Bhd (Petronas), the Sarawak government can negotiate directly with the prime minister and make decisions.

Any decision taken by the prime minister will require Petronas to implement it without the bureaucratic barriers like before,” he told Bernama. …”

theborneopost.com ↗

FROM THE THREAD

Tom's notes 1

  1. Tom Kirkman

    Negotiations involving the Federal Government, the Prime Minister, Sarawak, Sabah, and Petronas regarding to restoration of the Malaysia Agreement 1963 are still underway.
    Note that per the Petroleum Development Act 1974, Petronas is required by law to follow instructions from the Prime Minister.
    So do take note of this distinction: any discussion regarding Sarawak and Sabah Oil & Gas rights needs to be discussed between the governments of Sarawak, Sabah, and the Prime Minister.
    Here is PDA 1974 Section 3:
    ==============
    The Corporation
    3. (1) Notwithstanding section 22 of the Companies Act 1965, relating to the names of companies, the Corporation shall be styled as the Petroleum Nasional Berhad or in short form PETRONAS.
    (2) The Corporation shall be subject to the control and direction of the Prime Minister who may from time to time issue such direction as he may deem fit.
    (3) Notwithstanding the provisions of the Companies Act 1965 or any other written law to the contrary, the direction so issued shall be binding on the Corporation.
    =============
    http://www.agc.gov.my/agcportal/uploads/files/Publications/LOM/EN/Act%20144%20-%20Petroleum%20Development%20Act%201974.pdf

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