Petroleum Development Act

In terms of institutional arrangements, PETRONAS, established under the Petroleum Development Act (1974) as a state-owned enterprise, has exclusive rights of ownership, exploration and production.

It comes under the direct purview of the Prime Minister and is responsible for its planning, investment and regulation of all up-stream activities.

The Ministry of International Trade and Industry (MITI) as well as the Domestic Trade and Consumer Affairs (MDTCA), through the Petroleum Regulations of 1974 (amended in 1975 and 1981), are vested with powers to regulate all downstream activities. MITI is responsible for the issuance of licences for the processing and refining of petroleum and the manufacture of petrochemical products, whilst MDTCA issue licences for the marketing and distribution of petroleum products.

Petroleum Industry

Subsequent to the passing of the Petroleum Development Act , replacing the system of concession.

1. Upstream
   
   

   Through the Petroleum Development Act, 1995, The Federal Government vested all petroleum resource of Malaysia to a wholly owned Government company called Petroleum National Berhad. (PETRONAS) www.petronas.com.my. PETRONAS, enters into Production Sharing Agreements with other petroleum companies, which explore, and develop the resources. The main Petroleum companies which had entered into production sharing contracts with PETRONAS are as follows:-

   Pertronas Carigali Esso Production Malaysia Shell Sabah Selatan Nippon Oil Lundin Malaysia Sabah Shell Petroleum Sarawak Shell Berhad Sante Fe Energy Resources

   AMERADA HESS YPF Malaysia Mitshibishi Corporation Murphy Sarawak Mobil JAPEX NORSK Hydro

   
   
2. Downstream

Downstream in the petroleum sector comprise several activities undertaken by many different players. There are as follows: -

Crude oil refining

• Petronas Penapisan (Terengganu) Sdn. Bhd.
• Petronas Penapisan (Melaka) Sdn. Bhd.
• EssO
• Shell

Petroleum product retailing

• Petronas Dagangan
• Shell Trading
• Esso Malaysia
• Caltex

Natural gas processing, transmission and wholesale

• Petronas Gas Bhd.

Natural gas retailing

• Gas Malaysia Sdn. Bhd. ( no website as yet )

Shipping of crude oil and petroleum products

• Manufacture of Liquified Natural Gas
• Malaysia LNG