Malaysia Petroleum Management

Malaysia Petroleum Management (MPM) acts for and on behalf of PETRONAS in the overall management of Malaysia’s domestic petroleum resources throughout the lifecycle of upstream oil and gas assets.
PETRONAS is the custodian of Malaysia’s petroleum resources:
 
  • The Petroleum Development Act (PDA) of 1974 vests in PETRONAS the entire ownership of, and exclusive rights to exploit Malaysia’s petroleum resources.
  • PETRONAS is a corporation wholly-owned by the Government of Malaysia and is directly answerable to the Prime Minister.
  • PETRONAS as a competent body also provides expert advice to the Government on oil and gas matters, regulations and incentives in ensuring a conducive environment for upstream investment.
PETRONAS manages Malaysia’s petroleum resources through MPM:
 
  • PETRONAS through MPM enters into Petroleum Arrangement (PA) contracts with oil and gas companies, and is responsible in overseeing operations and managing the Contractors’ performance.
  • MPM exercises PETRONAS’ powers of licensing and authorisation, stipulating terms of contracts (including contractual period, management of operations, recovery of costs, division of profit and obligation of parties) and control over work programmes and budgets.
  • MPM also acts as a responsible resource owner in ensuring sustainability of Malaysia's petroleum resource base, through long term planning, safe execution of exploration, development and production activities, and promotion of local capability development and economic spin-offs.

General Upstream Regulatory Framework

 
Petroleum Development Act 1974 & Petroleum Regulations 1974
PETRONAS is given the exclusive rights to exploration and exploitation of hydrocarbon resources in Malaysia. PETRONAS also has the right to issue licenses for upstream activities in Malaysia.
 
Petroleum Arrangement Contracts
Stipulates terms, conditions, rights and responsibilities of parties in a defined contract area.
 
PETRONAS Procedures and Guidelines for Upstream Activities
A one-stop reference document for governing upstream activities in Malaysia.
 
Other PETRONAS guidelines and requirements
Specific or general directives which may be issued from time to time.