Is AKTA KEMAJUAN PETROLEUM 1974 still in force?

Yes — AKTA KEMAJUAN PETROLEUM 1974 is currently in force.

When did AKTA KEMAJUAN PETROLEUM 1974 take effect?

AKTA KEMAJUAN PETROLEUM 1974 was first recorded in 1974.

How many sections does AKTA KEMAJUAN PETROLEUM 1974 have?

AKTA KEMAJUAN PETROLEUM 1974 contains 15 sections.

Where can I read the official version of AKTA KEMAJUAN PETROLEUM 1974?

The official text of AKTA KEMAJUAN PETROLEUM 1974 is published at lom.agc.gov.my.

/akn/my/act/act/1974/144

*PETROLEUM DEVELOPMENT ACT 1974

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Bahasa Malaysia English

Type: Act
Status: In force
Enacted: 1974
Sections: 16
Languages: MS · EN

Quick answer

About this act

*PETROLEUM DEVELOPMENT ACT 1974 is Malaysia Act, cited as Act 144 1974, currently marked in force and first recorded in 1974.

Opening note

Preamble

An Act to provide for exploration and exploitation of petroleum whether onshore or offshore by a Corporation in which will be vested the entire ownership in and the exclusive rights, powers, liberties and privileges in respect of the said petroleum, and to control the carrying on of downstream activities and development relating to petroleum and its products; to provide for the establishment of a Corporation under the Companies Act 1965 [Act 125] or under the law relating to the incorporation of companies and for the powers of that Corporation; and to provide for matters connected therewith or incidental thereto. [1 October 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

Section 1

This Act may be cited as the Petroleum Development Act 1974.

Section 2

Ownership

(2)

The vesting of the ownership, rights, powers, liberties and privileges referred to in subsection (1) shall take effect on the execution of an instrument in the form contained in the Schedule to this Act.

(3)

The ownership and the exclusive rights, powers, liberties and privileges so vested shall be irrevocable and shall enure for the benefit of the Corporation and its successor.

The Corporation

Section 3

(2)

The Corporation shall be subject to the control and direction of the Prime Minister who may from time to time issue such direction as he may deem fit.

(3)

Notwithstanding the provisions of the Companies Act 1965 or any other written law to the contrary, the direction so issued shall be binding on the Corporation.

Powers of the Corporation

Section 3A

(2)

The powers conferred on the Corporation under subsection (1)

shall be in addition to and not in derogation of any of the rights,

Petroleum Development 7

powers, liberties, privileges and benefits conferred on the

Corporation by this Act or any other written law.

Cash payment by the Corporation

Section 4

In return for the ownership and the rights, powers, liberties and privileges vested in it by virtue of this Act, the Corporation shall make to the Government of the Federation and the Government of any relevant State such cash payment as may be agreed between the parties concerned.

Section 5

National Petroleum Advisory Council

(2)

It shall be the duty of the National Petroleum Advisory

Council to advise the Prime Minister on national policy, interests and matters pertaining to petroleum, petroleum industries, energy resources and their utilization.

Prime Minister’s permission required for downstream operations

Section 6

(2)

Any person who on the commencement of this Act is carrying on any business referred to in subsection (1) may continue to do so but shall, not later than six months from the date of the commencement of this Act, apply in writing to the Prime Minister for his permission referred to in subsection (1).

8 Laws of Malaysia ACT 144

(3)

Subsection (1) shall apply to any business of marketing or distributing of petroleum or petro-chemical products; and any person who on the commencement of this subsection is carrying on any such business may 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 for his permission referred to in subsection (1).

(4)

Where the Prime Minister grants his permission under this section he may, at his discretion, impose such terms and conditions as he may deem fit.

(5)

Any person who acts in contravention of this section or fails to comply with any term or condition of any permission granted under this section shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a continuing offence he shall be liable to a further fine not exceeding one hundred thousand ringgit for each day or part of a day during which the offence continues after the first day in respect of which the conviction is recorded; and all machinery, tools, plant, buildings and other property or thing used or intended to be used in the commission of the offence and any petroleum or its products thereby obtained shall be liable to forfeiture.

(6)

The Prime Minister may by notification in the Gazette exempt any business referred to in subsections (1) and (3) or any company or class of company carrying on any such business from the provisions of this section.

Section 6A

(Deleted by Act A382).

Section 7

Power to make regulations

The Prime Minister may make regulations for the purpose of carrying into effect the provisions of this Act and, without prejudice to the generality of the foregoing, such regulations may, in particular, provide for—

(a)

the conduct of or the carrying on of—

Petroleum Development 9

(i)

any business or service relating to the exploration, exploitation, winning or obtaining of petroleum;

(ii)

any business involving the manufacture and supply of equipment used in the petroleum industry;

(iii)

downstream activities and development 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 imprisonment not exceeding five years or both for breach of any of the regulations and for non-compliance with any term or condition of any licence, permission or approval issued or granted under the regulations;

(d)

the forfeiture of anything used or intended to be used in the commission of any such breach or non-compliance.

Delegation

Section 7A

The Prime Minister may, by notification in the Gazette, delegate, subject to such conditions and restrictions as may be prescribed in such notification, the exercise of any of his powers or the performance of any of his duties under this Act, other than his powers and duties under subsections 3(2), 5(1) and section 7, to any person described by name or office.

Section 7B

Offences by bodies of persons and by servants and agents

(2)

Whenever it is proved to the satisfaction of the court that a contravention of the provisions of this Act or any regulations made thereunder has been committed by any clerk, servant or agent when acting in the course of his employment the principal shall also be liable for such contravention and to the penalty provided therefor:

Provided that nothing in this section shall be deemed to exempt the liability of the clerk, servant or agent in respect of any penalty provided by this Act or any regulations made thereunder for any contravention proved to have been committed by him.

Jurisdiction of courts

Section 7C

Notwithstanding anything contained in any other written law to the contrary, a Sessions Court shall have jurisdiction to try any offence under this Act or any regulations made thereunder and on conviction to impose the full penalty therefor.

Section 8

Saving

(2)

In the application of section 14 of that Act to the Corporation, any reference to the licensee shall be construed as a reference to the

Corporation, and any reference to the exercising of any rights contained in the licence shall be construed as a reference to the exercising of the rights, powers, liberties and privileges vested in the

Corporation by virtue of subsection 2(1) of this Act.

Transitional

Section 9

(2)

Where the six months’ period has elapsed and no extension under subsection (1) is allowed, the licences, leases or agreements mentioned in that subsection shall determine or cease to have effect and there shall be paid to the person whose rights under the licence, lease or agreement have been so determined, adequate compensation which may be in the form of a single sum or in the form of periodical payments of money or in such other form as may be determined by the Federal Government or under any arrangement agreed upon between such person and other person designated by the Federal

Government.

Definition

Section 10

For the purpose of this Act, the expression “petroleum” means any mineral oil or relative hydrocarbon and natural gas existing in its natural condition and casinghead petroleum spirit including bituminous shales and other stratified deposits from which oil can be extracted.

12 Laws of Malaysia ACT 144

Schedule

[Subsection 2(2)]

GRANT OF RIGHTS, POWERS, LIBERTIES AND PRIVILEGES IN

RESPECT OF PETROLEUM

I, .................................................................................................... on behalf of the

Government of ......................................................................................... on this

.................. day of .............................................. 20........., hereby grant in perpetuity and convey to and vest in PETRONAS the ownership in and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether lying onshore or offshore of Malaysia. The grant, conveyance and vesting made hereunder shall be irrevocable and shall enure for the benefit of

PETRONAS and its successor.

In witness whereof I on behalf of the Government of .......................... here-unto set my hand the day and year first herein above written.

.................................................................

on behalf of the Government of

.................................................................

Witness’s signature:

.................................................................

I, .......................................................................................................... on behalf of

PETRONAS hereby accept the grant, conveyance and the vesting made above.

.................................................................

Witness’s signature:

.................................................................

Done at .................................................................... this ....................... day of

............................................. 20.........

Act 144

LIST OF AMENDMENTS

Amending law

Short title

In force from

Petroleum Development

(Amendment) 1975

01-10-1974; except paragraph 2(c), s.3

and 5: 01-05-1975

Act 160

Malaysian Currency

(Ringgit) Act 1975

29-08-1975

Act A382

Petroleum Development

(Amendment) Act 1977 01-05-1975; except s.4: 01-10-1974

Act A613

Petroleum Development

(Amendment) Act 1985

01-10-1974

Corrigendum 01-04-2010

Act 144

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

Long title

Act A613

01-10-1974

01-04-2010

Act A613 01-10-1974

01-10-1974

except s. 2(c),

5 and 6:

01-05-1975

6(3B)

01-04-2010

Act A382 01-05-1975

Act A290 01-10-1974

01-10-1974

8(2)

01-04-2010 9

Act A290 01-10-1974

Act A382 01-10-1974

Common questions

What is AKTA KEMAJUAN PETROLEUM 1974?: *PETROLEUM DEVELOPMENT ACT 1974 is Malaysia Act, cited as Act 144 1974, currently marked in force and first recorded in 1974.
Is AKTA KEMAJUAN PETROLEUM 1974 still in force?: Yes — AKTA KEMAJUAN PETROLEUM 1974 is currently in force.
When did AKTA KEMAJUAN PETROLEUM 1974 take effect?: AKTA KEMAJUAN PETROLEUM 1974 was first recorded in 1974.
How many sections does AKTA KEMAJUAN PETROLEUM 1974 have?: AKTA KEMAJUAN PETROLEUM 1974 contains 15 sections.
Where can I read the official version of AKTA KEMAJUAN PETROLEUM 1974?: The official text of AKTA KEMAJUAN PETROLEUM 1974 is published at lom.agc.gov.my.