Malaysia Petroleum Management
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PETRONAS is the Custodian of Malaysia’s Petroleum Resources
Malaysia Petroleum Management (MPM) is entrusted to act for and on behalf of PETRONAS in the overall management of Malaysia’s petroleum resources throughout the lifecycle of upstream oil and gas assets. MPM is the governing body for the country’s petroleum development since PETRONAS was established in 1974.
1The Petroleum Development Act (PDA) of 1974 vests in PETRONAS the entire ownership of, and exclusive rights to manage Malaysia’s petroleum resources
2PETRONAS as a Regulatory body also provides advisory to the government on Oil and gas matters, regulations and incentives in ensuring a conducive environment for upstream investment.
PETRONAS Manages Petroleum Resources Through MPM
MPM’s strengths as a REGULATOR with a commercial mindset and integrated market-to-customer approach are further complemented by its access to a deep pool of institutionalised expertise both in the upstream and downstream segments of the oil and gas business. MPM’s structure and position within PETRONAS allows for independent and timely decision making. The combination of associated technical skills and global experience allows MPM to be the SHAPER and ENABLER of the Malaysia Upstream Industry whilst being responsive to the needs of investors.
1
PETRONAS through MPM enters into Petroleum Arrangement (PA) contracts with oil and gas companies and is responsible in overseeing operations and managing the PA Contractors’ performance.
2
MPM exercise PETRONAS’ powers of licensing and authorisation, stipulating terms of contracts (including contractual period, management of operations, recovery of costs, division of profit and obligations of parties) and control over work programmes and budgets.
3
MPM also acts a 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.
MPM is organised to provide effective supervision throughout the life of upstream assets, from managing investors’ entry, to planning and executing exploration, development, production and abandonment activities.
MPM’s Scope Includes
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