It was also to bring the ordinance in line with current practices and operations in the oil and gas industry’s upstream sector.

In tabling it, Sarawak Deputy Chief Minister Awang Tengah Ali Hasan said with the amendment, the state would be able to strengthen regulatory control over the exploration of petroleum and mining activities in the state.

He said when the federal Parliament passed the Continental Shelf Act 1996 and Petroleum Mining Act 1966 to regulate the mining of petroleum in the continental shelf, these acts were not extended to Sarawak.

“These acts were made applicable to Sarawak after the 1969 Proclamation of Emergency when in the exercise of emergency powers under article 150 of the Federal Constitution, the Yang di-Pertuan Agong promulgated the Emergency (Essential Powers) Ordinance No 10, to extend the said Acts to Sarawak and Sabah,” he told the Sarawak state legislative assembly sitting here.

He said the ordinance was never repealed by the emergency ordinance which ceased to have effect in 2012.

He said Article 150 (7) of the Federal Constitution provides that all laws passed during the emergency shall cease to have effect six months after the proclamation was annulled by Parliament.

He said from 2012, the ordinance remains the only law that regulates the exploration, prospecting and mining of petroleum on land in Sarawak.

“I must state categorically that having regards to section 8 of the Petroleum Development Act 1974, Petronas is not exempted from complying with OMO or Land Code when it or its contractors undertake exploration, prospecting and mining for petroleum in Sarawak,” he said.

Awang Tengah said the purpose of regulating the upstream activities of Petronas and its contractors was to ensure that they comply with state laws.

This was to ensure the state’s resources benefited interests of the state and its people

He said Sarawak was the main producer of natural gas and of liquefied natural gas in Malaysia.

He said according to the Statistics Department, the volume exported from Sarawak was 27 million metric tons with a total gross value of RM41.1 billion in 2017.

Awang Tengah said the issue of oil and gas ownership found on Sarawak’s shore and offshore would be addressed in the context of the state’s exercise of regulatory control over upstream activities.

“And the consequence of such a regulatory control would be to have a much fairer and more equitable monetary return from the exploitation of Sarawak’s hydrocarbon resources and much greater participation by Sarawakians and Sarawak companies in the oil and gas industry in the state,” he said.

“I would like to reassure investors that the state will continue to work with Petronas to ensure that their interests are protected,” he added.