Overview of Governing Laws in Malaysia Upstream


PETRONAS is the custodian of Malaysia's petroleum resources and was established under the Petroleum Development Act 1974.


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. 


Malaysia Petroleum Management (MPM) acts for and on behalf of PETRONAS in the overall management of Malaysia's petroleum resources throughout the lifecycle of upstream oil and gas assets. 

Petroleum Development Act 1974

The Petroleum Development Act 1974 (PDA 1974) is the main legislation governing the Malaysian oil and gas industry. Under the Act, PETRONAS is vested with the entire ownership, and the exclusive rights, powers, liberties and privileges of exploring and exploiting, in respect of petroleum resources whether onshore or offshore Malaysia.


PDA 1974:

PETRONAS is given the entire ownership and exclusive rights in exploring, exploiting, winning, and obtaining hydrocarbon resources in Malaysia


PA Contracts:

A contractual document that set out the rights, responsibilities and obligations of each party including the requirement to comply with all procedures and guidelines issued by PETRONAS.


Governing Standards for Malaysia Petroleum Operations (Governing Standards)

The Governing Standards sets out the PETRONAS’ standards and minimum requirements that are related and applicable to the conduct of Petroleum Operations and activities by all Petroleum Arrangement (PA) Contractors under the PA Contracts.


Other standards and references applicable to PA Contractors

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