Petroleum Development Act, 1974

This act vests the National Oil Company, Petroleum Nasional Berhad (PETRONAS), with the ownership and exclusive rights of exploring petroleum in Malaysia, whether onshore or offshore. It also provides PETRONAS with the power to operate and control downstream activities and developments relating to petroleum and its products.

 

The regulation further provides PETRONAS with the rights to issue licenses for contractors to commence and continue any business or service pertaining to upstream activities. Thus, a contractor wishing to participate in exploration and production activities must apply for a license from PETRONAS and receive it in order to develop such operations.

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