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S'wak starts legal action against Petronas Carigali in Miri
The Sarawak state government has reportedly initiated legal action against Petronas Carigali Sdn Bhd, claiming the latter had been operating at its Miri Crude Oil Terminal illegally.
In a legal notice dated April 30, the Petronas subsidiary was given 21 days to obtain the necessary licence, failure of which could lead to financial penalties, according to the New Straits Times' Business Times.
Summary
The Sarawak state government has sent Petronas Carigali Sdn Bhd a legal notice claiming it is operating without a licence at the Miri Crude Oil terminal, according to a news report.
It gives the Petronas subsidiary 21 days to obtain the necessary licence or face financial penalties.
The Sarawak state government has reportedly initiated legal action against Petronas Carigali Sdn Bhd, claiming the latter had been operating at its Miri Crude Oil Terminal illegally.
In a legal notice dated April 30, the Petronas subsidiary was given 21 days to obtain the necessary licence, failure of which could lead to financial penalties, according to the New Straits Times' Business Times.
Citing a news report, it said Sarawak claimed Petronas Carigali has breached Section 7(e) of the Distribution of Gas Ordinance (DGO), a state law that stipulates the requirement for a licence for operating gas pipelines and related facilities in the state.
The legal action signals a deepening dispute between Sarawak and Petronas, as the Borneo state pushes for greater control over oil and gas resources found in its jurisdiction through its own firm, Petroleum Sarawak Berhad (Petros).
Sarawak is challenging the 1974 Petroleum Development Act (PDA), which grants Petronas full control over Malaysia’s hydrocarbon resources.
The state argues that the PDA does not apply within its jurisdiction and instead insists on using the Oil Mining Ordinance 1958, which grants authority over oil and gas found within 200 nautical miles off its coast.
Sarawak claims it holds 60.87 percent of Malaysia’s proven and probable petroleum reserves and accounts for 90 percent of liquefied natural gas (LNG) exports.
The tension has reportedly caused US oil company ConocoPhillips to withdraw from a major deepwater oil and gas project off the Borneo coast.
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