The Petroleum Development Act of 1974 (PDA) vested PETRONAS with 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. From a national perspective, PETRONAS’ objectives under PDA is to maximize value of domestic resources and to promote spin-off to the Nation.
Today, the duties and powers conferred to PETRONAS under PDA, as custodian of petroleum resources, is executed by PETRONAS’ Malaysia Petroleum Management also known as MPM. MPM is entrusted with the responsibility of managing and steer the overall E&P activities in Malaysia, including to promote exploration investments and facilitate the development and production activities, whilst protecting the national interest. In addition, MPM role also encompasses the optimization of Malaysia E&P assets and the management of all E&P companies operating in the country.
MPM, which is part of the Upstream Business unit in PETRONAS, manages Malaysia upstream activities throughout the E&P life cycle with coordinated support from critical functions. MPM is currently made up of nine departments namely Petroleum Resource Exploration (PREx), Petroleum Resource Development (PRD), Petroleum Operations Management (POM), Strategic Planning (SP), Finance and Account (FA), Technical Data (TD), PSC Sourcing Governance (PG), Health, Safety and Environment (HSE) and Gas Management (GM), with total manpower of around 700 people.
As at 1st January 2014 Malaysia’s discovered petroleum resources stood at 22.57 billion boe, representing 1.5% increase from previous year. Malaysia’s petroleum production level in 2013 stands at 1,621 kboe/d, an increase of 2.14% from 2012 production level.
As of at June 2014, there are 100 PSCs and 6 RSCs in Malaysia. More than 30 international companies are investing in PSC and RSC in Malaysia, of which 25 different international companies are Operators. Over RM 300 billion has been spent in E&P Upstream industry from 1975 to 2013.