KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) remains under the sole ownership of the federal government, though measures have been introduced to boost state participation through strategic collaboration platforms, joint projects, and value chain involvement, said Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
She said this approach reflects an inclusive federal framework and ensures long-term benefits for all stakeholders.
Petronas, incorporated under the Companies Act 1965 as the national oil and gas company, is fully owned by the federal government. Under the Petroleum Development Act 1974 (Act 144), Petronas holds ownership of petroleum resources and enjoys exclusive rights to explore, manage, and develop them—whether onshore, offshore, or within Malaysian waters.
Azalina was responding to a query from Datuk Seri Dr Jeffrey Kitingan (GRS–Keningau), who proposed allocating 50% of Petronas shares to oil- and gas-producing states—Sarawak, Sabah, Terengganu, and Kelantan—as a means to strengthen the federation and reduce political disputes over resource rights.
While ownership remains with the federal government, Azalina said producing states benefit directly from petroleum activities via cash payments and various commercial arrangements. Sector revenues, she added, are also distributed nationwide in line with development priorities.
Source: Bernama
