PETRA JAYA: Sarawak has strengthened its regulatory control over exploration and prospecting for petroleum and mining with the passing of the Oil Mining (Amendment) Bill 2018 at the state legislative assembly sitting here on Tuesday.
The amendment creates a more effective regulatory framework for both upstream and downstream sectors with the enforcement of the Distribution of Gas Ordinance 2016.
Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan, who tabled the bill to amend the Oil Mining Ordinance, said Petronas would not be exempted from complying with state laws when undertaking exploration, prospecting and mining for petroleum in Sarawak.
“They must comply with our state laws to ensure that the exploitation of our valuable resources is carried out in a manner that serves the best interests of the state and people,” he said.
Sarawak, he said, ought to be able to derive optimal economic, and fair and equitable monetary returns from its resources.
“The state seeks to have greater participation both upstream and downstream of the oil and gas sectors. We are prepared to engage with Petronas to establish a regulatory framework for the exploration, prospecting and mining of oil and gas in Sarawak,” he said.
Awang said Petronas must demonstrate its willingness to respect state laws and show commitment to meet the aspirations of Sarawak for more equitable returns, as well as greater participation by local companies.
Sarawak is the main producer of natural gas and exporter of liquified natural gas (LNG) in Malaysia.
The volume of LNG exported from the state, he said, was 27 million metric tons, with a total gross value of RM41.1 billion last year.
The total volume of crude petroleum exported from the state was 5.353 million metric tons with a market value of RM9.4 billion.
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