Malaysia

Petronas exempted from licensing in Sarawak, operations unaffected

Oil and gas giant to benefit from streamlined procedures following federal-state agreement, with no impact on current exploration activities

Updated 1 year ago · Published on 25 May 2025 11:29AM

Petronas exempted from licensing in Sarawak, operations unaffected
There are no problems or negative effects. In fact, the licensing exemption will further facilitate Petronas' operations in the state - May 25, 2025

PETROLIAM Nasional Berhad (Petronas) will not face any operational disruptions or adverse effects following the recent exemption from licensing requirements in Sarawak, sources confirm.

According to a source close to the matter, this includes Petronas' ongoing exploration and production operations in the East Malaysian state.

“There are no problems or negative effects. In fact, the licensing exemption will further facilitate Petronas' operations in the state,” the source told Sinar Harian.

On Thursday, Premier of Sarawak, Datuk Patinggi Tan Sri Abang Johari Tun Openg, announced that Petronas would be granted an exemption from licensing requirements in Sarawak. This development follows a joint declaration signed between the Sarawak Government and the Federal Government of Malaysia.

He noted that the exemption would be applied if Petronas submits a formal application.

When asked whether the move would increase competition with other oil and gas exploration companies operating in the region, Abang Johari dismissed the concern.

“There is no issue regarding competition among production sharing contract (PSC) operators in Sarawak," he said.

“All companies seeking to develop and operate oil fields in Malaysia, including in Sarawak and Sabah, must adhere to the Petroleum Development Act 1974.”

He further explained, “Other companies are required to collaborate with Petronas, as Malaysia’s multinational oil and gas corporation.”- May 25, 2025

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