Petroleum Development Act 1974

Original Language Title: Petroleum Development Act 1974

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Act 144 BM laws of MALAYSIA Act REPRINTING 144 PETROLEUM DEVELOPMENT ACT 1974 Contains all amendments to 1 January 2006 PUBLISHED by the COMMISSIONER of law revision, UNDER the AUTHORITY of law REVISION ACT 1968 in COLLABORATION with PERCETAKAN NASIONAL MALAYSIA BHD 2006 laws of Malaysia ACT 1442 PETROLEUM DEVELOPMENT ACT 1974 Royal Assent Date............ 30 July 1974, the date of publication in the Gazette......... August 22nd, 1974 REPRINT BEFORE Reprinting the first............ 1997 Reprint the second............ 2001 Petroleum Development 3 laws of MALAYSIA Act 144 PETROLEUM DEVELOPMENT ACT 1974 ARRANGEMENT of SECTIONS section 1. Short title 2. Ownership 3. The Corporation 3A. Powers Of The Corporation 4. Cash payment by the Corporation 5. The Advisory Council Of The National Petroleum 6. The Prime Minister's permission required for handling the use of 6A. (Cut)
7. Power to make regulations 7A. 7B representation. Offences by a group of people and by the servants and agents of 7c. Jurisdiction of the Court 8. Saving of 9. Transition 10. The definition of SCHEDULE laws of Malaysia ACT 1444 Petroleum Development 5 laws of MALAYSIA Act 144 PETROLEUM DEVELOPMENT ACT 1974 an act to provide for the pengeksplorasian and petroleum exploitation, whether on the beach or off the coast by a corporation which will act all over the ownership and rights, powers, liberties and privileges exclusive with respect to petroleum, and to control the conduct of the use and development of activities relating to petroleum and its products; in order to make the provisions on the establishment of a corporation under the companies Act 1965 [Act 125] or under the law relating to the incorporation of the company and about the powers of the Corporation; and to make provision for matters connected or incidental thereto.
[October 1, 1974; P.u. (B) 501/1974] BE IT enacted by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: short title 1. This Act may be cited as the Petroleum Development Act 1974.
Ownership of the 2. (1) the entire ownership of petroleum, and the rights, powers, liberties and privileges exclusive to explore, exploit, acquire and acquire petroleum either on the beach or off the coast of Malaysia shall be vested in a corporation to be incorporated under the companies Act 1965 or under the law relating to the incorporation of the company.
Laws of Malaysia ACT 1446 (2) vesting provisions ownership, rights, powers, liberties and privileges referred to in subsection (1) shall take effect when executed an instrument in the form set out in the schedule of this Act.
(3) the ownership and rights, powers, liberties and privileges exclusive vested shall be cancelled and must be ' effect for the benefit of the Corporation and its successors.
The Corporation 3. (1) Notwithstanding the provisions of section 22 of the companies Act 1965 relating to the company name, the Corporation must be named Petroleum Nasional Berhad or PETRONAS in a nutshell.
(2) the Corporation shall be subject to the control and direction of the Prime Minister and the Prime Minister may from time to time issue such directions as he thinks fit.
(3) Notwithstanding the provisions of the companies Act 1965 or any other written law to the contrary, such issued shall bind the Corporation.
Powers Of The Corporation 3A. (1) in addition to all the powers of the Corporation as specified in the Memorandum and his Association, the Corporation shall have the power to take over or acquire through purchase, assignment, agreement or by any other means the whole or any part of any undertaking trade, business or enterprise in any form belonging to any person or group of persons (incorporated or unincorporated) and to carry out or make any activity , whether referred to in this Act or not, which prior to the acquisition or the acquisition was carried out by, and for the purpose, undertaking, business or the enterprise.
Progress of Petroleum 7 (2) the powers given to the Corporation under subsection (1) shall be in addition to and not a reduction of any rights, powers, liberties, privileges and benefits granted to the Corporation by this Act or any other written law.
Cash payment by the Corporation 4. In return for the ownership and rights, powers, liberties and privileges vested to it pursuant to this Act, the Corporation shall make any cash payments as agreed between the parties with respect to the Federal Government and the Government of any State.
National Petroleum Advisory Council 5. (1) a Council called the National Petroleum Advisory Council shall be established consisting of people including those from the State who are appointed by the Prime Minister.
(2) be the duty of the National Petroleum Advisory Council to advise the Prime Minister on national policies, interests and matters relating to petroleum, petroleum industry, energy resources and their use.
The Prime Minister's permission required for handling the use of 6. (1) Notwithstanding the provisions of any other written law, there is nothing about the arrangement involving the processing or refining petroleum or petrochemical products manufacturing of petroleum, may be exercised by any person other than PETRONAS, unless there is permission given by the Prime Minister in respect of an arrangement of it.
(2) any person, who at the commencement of this Act to carry out an arrangement referred to in subsection (1) may continue to do so but shall, not later than six months from the date of coming into operation of this Act, apply in writing to the Prime Minister to get the truth referred to in subsection (1).
Laws of Malaysia ACT 1448 (3) subsection (1) shall apply to any business marketing or distribution of petroleum or petrochemical products; and any person who at the commencement of this subsection carries on any business that can continue to do so but shall, not later than six months from the date of commencement of this subsection, apply in writing to the Prime Minister to seek the truth referred to in subsection (1).
* (3A) subsection (3) shall not be applicable to any person who is licensed under the Gas Supply Act 1993 [Act 501] supply gas to consumers through pipelines.
(3B) for the purposes of subsection (3A), the term "gas", "user" and "pipeline" shall have the same meaning assigned to it by the Act respectively Belakan Gas 1993.
(4) If the Prime Minister gives the truth under this section, he may, in its discretion, impose terms and conditions as it thinks fit.
(5) any person acting in breach of this section, or fails to comply with any term or condition of an authorization given under this section shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one million dollars or to imprisonment for a term not exceeding five years or both, and in the case of a continuing offence, he may be fined further not exceeding one hundred thousand dollars for each day or part of day such offence continues after the first day with which the conviction has been recorded; and all machinery, tools, plant, buildings and property or other thing used or proposed to be used in committing the offence and any petroleum or products from them can be dilucuthakkan.
(6) the Prime Minister may by notification in the Gazette exempt a matter referred to in subsection (1) and (3) or any company or any class of the company which carries on the business of the provisions of this section.
6a. (Cut by the Act A382).
The power to make regulations 7. The Prime Minister may make regulations for the purpose of enforcing the provisions of this Act and, without prejudice to the generality of * ENTRIES — Subsection 6 (3A) and (3B) is not yet in force – see A842 Act.
Progress of Petroleum 9 things earlier, the rule could, in particular, provide for — (a) the operation or journey — (i) an arrangement or service relating to explore, exploit the obtaining or acquiring petroleum;
(ii) an arrangement involving the manufacture and supply of equipment used in the petroleum industry;
(iii) development and deployment activities relating to petroleum;
(b) the marketing and distribution of petroleum and its products;
(c) penalties in the form of a fine not exceeding one hundred thousand ringgit or to imprisonment not exceeding five years or both for the violation of any regulations and for non-compliance with any term or condition of a licence, authorization or approval issued or given under the rule;
(d) forfeiture of any thing that is used or intended to be used while performing a breach or non-compliance with it.
Delegation

7A. The Prime Minister may, by notification in the Gazette, delegate, subject to such conditions and restrictions as may be specified in the notification, the exercise of the powers or performance of obligations under this Act in addition to the powers and duties under subsection 3 (2), 5 (1) and section 7 to any person described according to name or Office.
Offences by a group of people and by servants and agents 7B. (1) where an offence against this Act or any regulations made thereunder has been committed by a company, firm, association or other group of persons, any person that at the time of committing the offence was a Director, Manager or other similar officer or a partner of the company, firm, association or other group of persons purporting to act on its properties or as such shall be deemed to be guilty of the offence.
(2) when only it is proved to the satisfaction of the Court that a violation of this Act or any regulations made thereunder has been committed by a clerk, servants or agents acting within the running laws of Malaysia ACT 14410 occupation then also liable for violations of the principal and shall be liable to the penalty provided therefor: provided that no nothing in this section shall be deemed to exclude the liability of the clerk servants or agents, in respect of any penalty provided for by this Act or any regulations made thereunder for any breach of the evident has been done by him.
The Court's jurisdiction 7C. Notwithstanding any provisions to the contrary contained in any other written law, a sessions Court has jurisdiction to try any offence under this Act or any regulations made thereunder and shall on conviction to impose full penalties therefor.
Saving 8. (1) Petroleum Mining Act 1966 [Act 95], shall not apply to the Corporation, except section 14.
(2) in the application of section 14 of the Act to a corporation, any reference to a licensee shall be construed as a reference to the Corporation and a reference to the exercise of any rights contained in this license shall be construed as a reference to the exercise of the rights, powers, liberties and privileges that are vested in the Corporation pursuant to subsection 2 (1) of this Act.
SHIFT 9. (1) an exploration licence issued and any agreement made in accordance with petroleum Petroleum Mining Act 1966, and a licence, lease, and agreement issued or made under any written law in force relating to prospecting, mining or petroleum it shall remain in force for a period of six months from the date of coming into operation of this Act or for an extended period as permitted by the Prime Minister.
Progress of Petroleum 11 (2) if the period of six months has expired and no extension under subsection (1) is allowed, licence, lease or agreement referred to in that subsection shall terminate or cease to have effect and shall be paid to the rights under the licence, lease or agreement has been terminated it, adequate compensation either by way of payment in one lump sum or by way of periodic payments or in any other manner as determined by the Federal Government or under any the arrangements agreed upon between that person with another person designated by the Federal Government.
The definition of 10. For the purposes of this Act, the expression "petroleum" means any mineral or hydrocarbon oil and natural gas that are original and c singhead petroleum spirit including bituminous layers further precipitate syil others from whom oil is possible.
SCHEDULE a [Subsection 2 (2)] GRANTING of rights, powers, LIBERTIES and PRIVILEGES with RESPECT to PETROLEUM, I......................................................................................................., on behalf of the Government......................................................................................................................, on .............. day months.......................................... 20.......... hereby forever and memindahhakkan and vest at PETRONAS ownership of petroleum and the rights, powers, liberties and privileges exclusive to explore, exploit, acquire and acquire petroleum which is either on the beach or off the coast of Malaysia. Grant, conveyancing, and vesting provisions made under this irrevocable and shall ' effect for the benefit of PETRONAS and his successor.
The thing at saw on behalf of the Government....................................... sign me on this instrument on the day month and year aforesaid above.
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Laws of Malaysia ACT 14412 on behalf of the Government.................................................................
Tandatangan saksi:
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I,............................................................................................. on behalf of PETRONAS menyetuju hereby thank grant, conveyancing and vesting provisions made above.
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Tandatangan saksi
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Diperbuat di ................................................................................. pada .......................
hari bulan ................................................. 20.............. Petroleum Development 13 laws of MALAYSIA Act 144 PETROLEUM DEVELOPMENT ACT 1974 LIST AMENDMENT law short title of the Act into force amend the A290 Act Petroluem refineries 01-10-1974; except (Amendment) 1975, paragraph 2 (c), s. 3 and 5:01-05-1975 Act 160 Currency Act 29-08-1975 (dollars) 1975 A382 Petroleum Development Act Act 01-05-1975; with the exception of 1977 s. 4:01-10-1974 Petroleum Development Act A613 Act 01-10-1974 (Amendment) Act, 1985 A842 Act Petroleum has not become effective (Amendment) 1993 power laws of Malaysia ACT 14414 laws of MALAYSIA Act 144 PETROLEUM DEVELOPMENT ACT 1974 LIST SECTION AMENDED Section Power amend the effect from the long Title of the Act A613 01-10-1974 3A Act A613 01-10-1974 6 Act A290 01-10-1974 except s. 2 (c) , 5 and 6 01-05-1975 Act A382 01-05-1975 6A Act A290 01-05-1975 Act A382 01-05-1975 7 A290 Act 01-10-1974 7A A290 Act 01-05-1975 7B A290 Act 01-05-1975 7C Act A290 01-05-1975 8 A290 Act 01-10-1974 9 Act A290 01-10-1974 Act A382 01-10-1974