About Petroleum Development Act

 

The Petroleum Development Act (PDA) came into force on 1 October 1974.
It has vested in PETRONAS “the entire ownership in, and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether onshore or offshore of Malaysia”.
 

The PDA provided the basis for the formation of PETRONAS as a national oil corporation, heralded the restoration of Malaysia’s sovereignty over its petroleum resources and marked the transition from concession agreements to new contractual arrangements with oil companies based on production sharing. From a national perspective, PETRONAS' objectives under the PDA is to maximise the value of domestic resources and to promote spin-off developments for the Nation. The powers and responsibilities as custodian of Malaysia’s petroleum resources conferred to PETRONAS under the PDA is today executed through Malaysia Petroleum Management (MPM).

 

Read the PDA here