State govt urges oil and gas groups to follow all state laws

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KUCHING: The state government would like all parties involved in oil and gas exploration and production within its boundaries, including PETRONAS, to comply with all relevant state laws such as the Oil Mining Ordinance and also the Land Code, in regard to the use and occupation of State land for their activities.

Deputy Chief Minister, Datuk Amar Douglas Uggah Embas said this during his speech on the ministerial motion on Malaysia Agreement 1963 (MA63) and matters related thereto at the State Legislative Assembly (DUN) sitting here yesterday.

According to him, the state government has never given any waiver to PETRONAS regarding strict compliance with state laws.

“Therefore, since PETRONAS and its production sharing contractors have not obtained exploration or mining leases for petroleum in accordance with the Oil Mining Ordinance and no title or permit to occupy State Land (including the Continental Shelf areas) under the Land Code PETRONAS has to regularize their activities to comply with our law, “ he said.

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Uggah stressed that the state government will not jeopardise PETRONAS’ business or economic interests in Sarawak or act against the national interests. “Further, the state government, at this stage, does not wish to resort to the courts to resolve such issue.

“As in the 1970s, the state government desires to achieve an amicable solution whereby both federal and state governments interests can be accommodated with due recognition of the state’s constitutional rights, “he pointed out.

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