Malaysia political shift may impact Petronas' management: WoodMac

Malaysia political shift may impact Petronas' management: WoodMac

As the article above mentions, I fully expect some changes to be made to PETRONAS - Malaysia's National Oil Company.

By law, PETRONAS as Malaysia's National Oil Company is subject to the control and direction of the Prime Minister.

There is a new Malaysia Prime Minister.

And I suspect that Dr. Mahathir may want to exert a bit of control over the direction that PETRONAS is taking.

A copy of Malaysia's Petroleum Development Act 1974 is attached.  I believe this 2013 revision is the latest version of the Act.

Excerpts below from the Act, for reference of the Prime Minister's control over PETRONAS:

================================

Ownership

2. (1) The entire ownership in, and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether onshore or offshore of Malaysia shall be vested in a Corporation to be incorporated under the Companies Act 1965 or under the law relating to incorporation of companies.
...

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.
...

National Petroleum Advisory Council

5. (1) There shall be established a Council to be known as the National Petroleum Advisory Council consisting of such persons including those from the relevant States as the Prime Minister may appoint.

(2) It shall be the duty of the National Petroleum Advisory Council to advise the Prime Minister on national policy, interests and matters pertaining to petroleum, petroleum industries, energy resources and their utilization.
...

Power to make regulations

7. The Prime Minister may make regulations for the purpose of carrying into effect the provisions of this Act and, without prejudice to the generality of the foregoing, such regulations may, in particular, provide for -

(a) the conduct of or the carrying on of -

(i) any business or service relating to the exploration, exploitation, winning or obtaining of petroleum;

(ii) any business involving the manufacture and supply of equipment used in the petroleum industry;

(iii) downstream activities and development relating to petroleum;

Act 144 - Petroleum Development Act 1974.pdf

Share this post


Link to post
Share on other sites