The Sarawak state government has issued a legal notice to Petronas Carigali Sdn Bhd, the upstream subsidiary of Petroliam Nasional Bhd (Petronas), for allegedly operating without a valid permit at its Miri Crude Oil Terminal.
According to a news report, the notice—dated 30 April—accuses the company of breaching Section 7(e) of the Distribution of Gas Ordinance (DGO) 2016, which mandates a licence for the construction, management or maintenance of gas pipelines or related facilities.
Petronas Carigali has been given 21 days to obtain the required licence. Failure to comply may result in financial penalties under Section 21A of the same ordinance.
This development marks the latest in a series of tensions between Sarawak and the national oil company, as the state continues efforts to assert greater regulatory control over its oil and gas resources.
Sarawak established its own oil and gas regulator, Petroleum Sarawak Bhd (Petros), in 2017. The entity oversees upstream and downstream oil and gas operations within the state.
However, Sarawak’s push for greater autonomy has led to continued friction with Petronas, which was formed under the federal Petroleum Development Act (PDA) 1974 and holds exclusive rights to the nation’s hydrocarbon assets.
The legal notice further highlights ongoing jurisdictional disputes between the state and federal governments regarding control and licensing within Malaysia’s energy sector.
–Business Times
