The Petroleum Arrangement (PA) contract establishes contractual legal and commercial relations between PETRONAS and the upstream oil and gas companies.
Among the terms of the PA contracts is that contractors have the obligation to comply with all directives and requirements given by PETRONAS from time to time.
The standard policies and requirements of PETRONAS applicable for all PA contractors in Malaysia have been codified in the PETRONAS Procedures and Guidelines for Upstream Activities (PPGUA).
It serves as the key reference providing further details to complement the PA contracts. The current Version 4.1 of PPGUA incorporates the latest procedures and guidelines covering the entire life of asset from exploration till abandonment, updated in line with circumstances and challenges faced by the upstream industry today.
The PPGUA has been developed with consideration that the contractor is professional and competent in executing upstream activities. Contractors are required to comply with the procedures when executing its operation and are expected to drive their upstream activities in a prudent, proficient and effective manner. Moreover, contractors are expected to exercise good self-governance over operations and shall ensure compliance to all the requirements stipulated, while non-compliances must go through a consequence management process as determined by PETRONAS. It is expected that compliance to PPGUA shall bring the expected impact and benefits to the industry.
PPGUA 4.1 can be accessed through here