{"id":128716,"date":"2026-02-06T09:52:37","date_gmt":"2026-02-06T09:52:37","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=128716"},"modified":"2026-02-09T10:45:12","modified_gmt":"2026-02-09T10:45:12","slug":"malaysia-energy-oil-gas","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/malaysia-energy-oil-gas\/","title":{"rendered":"Malaysia: Energy- Oil &amp; Gas"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-128716","comparative_guide","type-comparative_guide","status-publish","hentry","guides-energy-oil-gas","jurisdictions-malaysia"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Azmi Law<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/02\/Azmi-Associates.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Azmi Law<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/02\/Azmi-Associates.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Energy- Oil &amp; Gas laws and regulations applicable in Malaysia<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established upstream oil and gas industry? What are the current production levels and what are the oil and gas reserve levels?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Since 1974, when PETRONAS the national petroleum corporation was established, the upstream oil and gas industry in Malaysia has developed strongly over the last fifty years. Oil and gas companies have entered into Petroleum Arrangement Contracts (PACs) with PETRONAS for the exploration, development and production of oil and gas.<\/p>\n<p>There are 150 producing fields and upstream petroleum facilities comprise of 10,000 km linking 400 offshore platforms with 19 floaters and 14 onshore terminals.<\/p>\n<p>Proven petroleum reserves are estimated at around 3 billion barrels for oil and 30 \u2013 40 trillion cubic feet for gas. Production levels are about 500 kbd for oil and about 7,000 mmscfd for gas.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore and exploit oil and gas resources granted? Please provide a brief overview of the structure of the regulatory regime for upstream oil and gas. Is the regime the same for both onshore and offshore?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Petroleum Development Act 1974 grants PETRONAS the entire ownership of all petroleum resources in Malaysia, both onshore and offshore, and the exclusive rights for exploring, exploiting, winning and obtaining the petroleum. PETRONAS through Petroleum Arrangement Contracts (PACs) awards the exploration, development and production contracts to contractors.<\/p>\n<p>PETRONAS conducts the Annual Malaysia Bid Round MBR) every year to solicit bidders for the PACs, with a supplemental Malaysia Bid Round Plus (MBR+), for Exploration Blocks, Discovered Resource Opportunities and Late Life Assets.<\/p>\n<p>The Petroleum Arrangement Contracts take the form of:<\/p>\n<ul>\n<li>Production Sharing Contracts (PSCs)<\/li>\n<li>Gas PSCs<\/li>\n<li>Deep Water PSCs<\/li>\n<li>Late Life Assets PSCs<\/li>\n<li>Discovered Resource Opportunities PSCs<\/li>\n<li>Small Field Asset PSCs<\/li>\n<\/ul>\n<p>In addition PETRONAS has entered into Technical Evaluation Agreements with international companies in respect of technical study opportunities for several oil and gas basins.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key features of the licence\/production sharing contract\/concession\/other pursuant to which oil and gas companies undertake oil and gas exploration, development and production?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The basic exploration PSC Term includes the Exploration Phase, Development Phase and Production Phase.<\/p>\n<p>The Petroleum Arrangement Contracts (PACs) take the form of a production sharing of the petroleum discovered, developed and then produced with royalties payable to Federal Government of Malaysia and the respective state governments. Profit oil or gas is then derived after deduction for cost oil or cost gas with the cost oil or gas percentage and profit split percentage variable in accordance with each PSC.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any unconventional hydrocarbon resources (such as shale gas) being developed and produced and is there a separate regulatory regime for those unconventional resources?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No shale oil or shale gas is being developed and produced, although there are some quantities of shale oil and gas which have been evaluated by geologists in the geological basins of Malaysia.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key regulators for the upstream oil and gas industry?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>PETRONAS is the key regulator under the Petroleum Development Act 1974 and Petroleum Regulations 1974.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved in the upstream oil and gas industry? Is there a government-owned oil and gas company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>PETRONAS, the wholly-owned national petroleum company, was established under the Petroleum Development Act 1974 (PDA) to own all petroleum resources in Malaysia, both onshore and offshore, and PETRONAS has the exclusive rights for exploring, exploiting, winning and obtaining all the petroleum resources in Malaysia.<\/p>\n<p>Under Section 3 of the PDA PETRONAS is under the direction of the Prime Minister of Malaysia.<br \/>\nPETRONAS, although its operations are conducted on a commercial basis.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any special requirements for, or restrictions on, participation in the upstream oil and gas industry by foreign oil and gas companies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no special requirements for foreign companies but they must meet the basic criteria of technical competence, organisational capability and financial strength.<\/p>\n<p>Foreign companies participate in the PACs through their foreign branch office registered in Malaysia or a locally incorporated company.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key features of the environmental and health and safety regime that applies to upstream oil and gas activities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>PETRONAS\u2019 requirements and carbon commitment include zero continuous flaring and venting. Environmental Impact Assessments (EIAs) have to be conducted and approved by the regulator, the Department of Environment, before field development plans are approved by PETRONAS under the production sharing contracts..<\/p>\n<p>Petroleum operations in Malaysia have to abide by the following Malaysian laws, regulations and guidelines and the international treaties which Malaysia is a party to:<\/p>\n<ul>\n<li>Continental Shelf Act, 1996<\/li>\n<li>Environmental Quality Act, 1974<\/li>\n<li>Occupational Safety and Health Act, 1994<\/li>\n<li>Exclusive Economic Zone (EEZ) Act, 1984<\/li>\n<li>Fisheries Act, 1985<\/li>\n<li>Merchant Shipping (Oil Pollution) Act, 1994<\/li>\n<li>Malaysian Maritime Enforcement Agency Act, 2004<\/li>\n<li>Convention on the Continental Shelf Act, 1958<\/li>\n<li>Convention on Fishing and Conservation of the Living Resources of the High Seas, 1958<\/li>\n<li>International Convention on Civil Liability for Oil Pollution Damage, 1969<\/li>\n<li>Convention on the International Regulations for Preventing Collisions at Sea, 1972<\/li>\n<li>United Nations Convention on the Law of the Sea, 1982<\/li>\n<li>Association of Southeast Asian Nations (ASEAN) Agreement on the Conservation of Nature and Natural Resources,1985<\/li>\n<li>International Convention on Oil Pollution Preparedness Response and Cooperation, 1980<\/li>\n<li>Convention on Biological Diversity, 1992<\/li>\n<li>Montreal Protocol,1982<\/li>\n<li>Basel Convention, 1989<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the government derive value from oil and gas resources (royalties\/production sharing\/taxes)? Are there any special tax deductions or incentives offered?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Besides the payment of royalties, contractors have to pay income tax (Income Tax Act, 1967) and the petroleum industry tax (Petroleum (Income Tax) Act 1967[PITA].<\/p>\n<p>Investment tax allowances may be applied for under the Promotion of Investments Act 1986.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on export, local content obligations or domestic supply obligations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the Petroleum Development Act, 1974 vendors for the supply of goods and services have to be registered with PETRONAS.<\/p>\n<p>Under the PSC the Contractors are required to abide by emergency supply obligations in respect of in the event of a national emergency or shortage of supply of crude oil in the country.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the regulatory regime include any specific decommissioning obligations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The PETRONAS Petroleum Arrangement Contracts (PACs) set out the obligations of the Contractor in respect of Abandonment and includes periodical payment by the contractor to an Abandonment Cess Fund and current Abandonment Plans and cost estimates are required.<\/p>\n<p>PETRONAS has encouraged a cost-efficient Rig-to-Reef (R2R) project (man-made reefs) for the abandonment\/decommissioning of offshore platforms and disposal, reuse and repurpose options are implemented for platforms, floaters, sub-sea facilities and pipelines. 140 wells, 6,300 MT of structures and 240 kilometres of pipelines have been abandoned\/decommissioned.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the regulatory regime that applies to the construction and operation of offshore and onshore oil and gas pipelines?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Malaysia Petroleum Management (MPM) division of PETRONAS engages the Petroleum Regulatory Division of the Ministry of Domestic Trade and Cost of Living (KPDN) as the secretariat for the Economic Zone Committee and the KPDN manages applications to construct, operate and use oil and gas pipelines in the Exclusive Economic Zone (EEZ).<\/p>\n<p>Besides the relevant Malaysian laws and regulations, the Petroleum Arrangement Contracts stipulate oversight and approval by PETRONAS for the construction and operations of offshore oil and gas pipelines. PETRONAS\u2019 approval is required for, inter alia, Field Development Plans, Annual Work Programme and Budgets, and Approvals for Expenditure.<\/p>\n<p>For onshore pipelines, land acquisition, planning permissions and permits required for the pipe-line right-of-way have to be obtained and relevant laws and regulations would be applicable, inter alia, the Land Acquisition Act 1960, the National Land Code 1960 (together with the land laws of Sabah and Sarawak if the pipelines are in Sabah and Sarawak), the Environmental Quality Act 1974 and the Town and Country Planning Act 1976.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the regulatory regime that applies to LNG liquefaction plants and LNG import terminals? Are there any such liquefaction plants or import terminals in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The MLNG complex in Bintulu, Sarawak with a capacity of nearly 30 million tonnes per annum, is owned and operated by MLNG! and MLNG2 and has been operating since 1983 when the first LNG cargo was exported.<\/p>\n<p>PETRONAS operates two Floating LNG (FLNG) facilities offshore in Malaysia &#8211; PFLNG 1 (1.2 million tonnes per annum) and PFLNG 2 (1.5 million tonnes per annum).<\/p>\n<p>A near-shore FLNG project (ZLNG) in Sabah, with a 2 million tonnes per annum capacity, is currently undertaken by PETRONAS with production targeted for 2027.<\/p>\n<p>There are currently two LNG import terminals &#8211; in Sungai Udang, Melaka and Pengerang, Johor and it is projected that there will be more LNG import terminals required to meet the demand for gas.<\/p>\n<p>Export LNG Plants are not regulated by the Energy Commission but LNG import terminals with regasification facilities require a licence from the Energy Commission.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the regulatory regime that applies to gas storage (not LNG)? Are there any gas storage facilities in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no gas storage facilities in use currently and there is no specific regulatory regime in respect thereof. However, the depleted oil and gas reservoirs offshore can be utilised for the storage of gas in the future if there is a need and economics permitting feasibility.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a gas transmission and distribution system in your jurisdiction? How is gas distribution and transmission infrastructure owned and regulated? Is there a third party access regime?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The gas transmission system is owned and operated by PETRONAS Gas Berhad and regulated by the Energy Commission under the Gas Supply Act 1993. The gas distribution system from the city-gates is owned and operated by Gas Malaysia Sdn Bhd and regulated by the Energy Commission under the Gas Supply Act 1993.<\/p>\n<p>The third-party access regime covers the transmission pipelines, distribution pipelines and also regasification terminals which send-out gas to the transmission and distribution pipelines and the Energy Commission regulates through the Gas Supply Act 1993, the Gas Supply Regulations 1997, the Third-Party Access Code and also Guidelines &amp; Directions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a competitive and privatised downstream gas market or is gas supplied to end-customers by one or more incumbent\/government-owned suppliers? Can customers choose their supplier?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Energy Commission\u2019s objective is to enable open competition to enable operational efficiency and optimum gas pricing to the customers. The third-party access requirement under the Gas Supply Act 1993 is a step in that direction.<\/p>\n<p>Both the gas transmission company, PETRONAS Gas Berhad, and the gas distribution company, Gas Malaysia Berhad, are public listed companies and they are subject to the competition laws and regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the downstream gas market regulated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The downstream gas market segments are gas processing plants, transmission and distribution. Gas processing plants are not licensed by the Energy Commission but the transmission and distribution businesses are regulated by the Energy Commission through the Gas Supply Act [1993] and the Gas Supply Regulations 1997. Thus the operations of PETRONAS Gas Berhad and Gas Malaysia Berhad are regulated by the Energy Commission.<\/p>\n<p>Licences issued by the Energy Commission are required for:<\/p>\n<ul>\n<li>Gas import into a regasification terminal<\/li>\n<li>Regasification of gas<\/li>\n<li>Shipping of gas<\/li>\n<li>Transportation of gas<\/li>\n<li>Distribution of gas<\/li>\n<li>Retailing of gas<\/li>\n<li>Use of gas<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any significant recent changes in government policy and regulation in relation to the oil and gas industry?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The government policies and regulations continue to support participation in the oil and gas industry, including investments by foreign companies, in line with Malaysia\u2019s economic philosophy and planning.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What key challenges currently affect your jurisdiction\u2019s oil and gas industry, and how has the government and\/or industry responded to it? In particular, please comment on the impact of recent geopolitical tensions and any significant regulatory or market developments.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The development of Malaysia\u2019s petroleum resources for the supply of energy to the domestic economy, to create employment opportunities and to earn foreign exchange through exports of crude oil, petroleum products and liquefied natural gas have been the objectives of the government and these objectives are now qualified with the government\u2019s net-zero emissions objective by 2050.<\/p>\n<p>The government has been actively promoting the development and use of clean energy, principally solar, waste-to-energy and hydroelectricity.<\/p>\n<p>Malaysia\u2019s strategic geographical position has always been a factor in the security of supply of energy for China, Japan, South Korea and Taiwan against the background that the Middle-East and Iran remain a high-risk areas for political and military conflicts. The supply of LNG from Malaysia to China, Japan, South Korea and Taiwan will continue to support the security of supply requirements of the importing countries, notwithstanding continuing and new supplies of LNG from Australia, Irian Jaya Indonesia, Papua New Guinea, Canada and the west coast of the USA. Although there are issues between various countries in regard to the South-China Sea, the sea lanes are projected to remain open for the international shipments of LNG<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any policies or regulatory requirements relating to the oil and gas industry which reflect\/implement the global trend towards the low-carbon energy transition?\u202f In particular, are there any (i) requirements for the oil and gas industry to reduce their carbon impact; and\/or (ii) strategies or proposals relating to (a) the production of hydrogen; or (b) the development of carbon capture, utilisation and storage facilities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In 1994, Malaysia had acceded to the United Nations Framework Convention on Climate Change 1992 and in 2016, Malaysia acceded to the Paris Agreement 2015 on Climate Change. In this context, Malaysia has implemented various initiatives and programs under the national climate action plan to ensure that the international Climate Change goals would be achieved. PETRONAS , which is stewarding Malaysia\u2019s low-carbon energy transition, has a Net Zero Carbon Emission\u2019s objective target date of 2050 and has begun to implement several carbon management initiatives, inter alia, liquified carbon dioxide cross border transportation, CCUS projects with TotalEnergies, Mitsui and Japan\u2019s JOGMEC, METI, JGC, JAPEX and K-Line and also the physical decarbonisation for offshore oil and gas operations. There are large storage reservoirs totalling 13.3 gigatonnes, both onshore and offshore Malaysia available for the storage of carbon dioxide.<\/p>\n<p>The oil and gas companies developing and producing oil and gas are required to minimise and monitor their CO2 emissions both in the context of field development plans, which have to be submitted to PETRONAS for approval, and also in the context of petroleum operations during the production of oil and gas. The oil and gas industry has installed clean energy utility facilities at the offshore platforms and planned for the use of green electricity at their onshore gas processing plants.<\/p>\n<p>CCUS is one of the major initiatives in Malaysia under the overarching Climate Change endeavour, and the Malaysian Government has endeavoured to meet its international obligations, within the context of the energy transition scenario.<\/p>\n<p>On 1 August 2025, the Carbon Capture, Utilization and Storage Act 2025 (\u201cCCUS Act\u201d) came into force and this was followed by the Carbon Capture, Utilization and Storage (Offshore Permit and Licensing) Regulations 2025 (\u201cCCUS Regulations\u201d) on 1 October 2025.<\/p>\n<p>One of the key introductions of the CCUS Act is the establishment of the Malaysia Carbon Capture, Utilization and Storage Agency (\u201cCCUS Agency\u201d), under the Ministry of Economy and this statutory body is responsible for administering, regulating, and promoting all aspects of CCUS in the country. The CCUS Agency is empowered to inter alia, advise on policy formulation, issue permits and licences, oversee storage operations, and manage the Post-Closure Stewardship Fund.<\/p>\n<p>The CCUS Act also recognises two primary categories of licensing\/permits which are assessment permits, which authorise geological and site characterisation studies, and storage licences, which allow the injection and storage of carbon dioxide. It is also important to note that both the assessment permits and storage licences are distinguished by their geographical scope, being issued separately for onshore and offshore activities.<\/p>\n<p>The CCUS Act also allows importation and storage of carbon dioxide captured abroad, subject to the CCUS Agency\u2019s approval and compliance with quality standards. This opens Malaysia to become a regional CCUS hub and to potential cross-border carbon storage services , thus aligning with regional carbon market ambitions and ASEAN cooperation on decarbonisation. The strategic storage agreement between PETRONAS and Japan\u2019s JGC, JAPEX and K-Line is an example of cross border business cooperation between businesses from different jurisdictions.<\/p>\n<p>The accompanying CCUS Regulations set out detailed procedures for applications for the offshore assessment permits and storage licences, including submission requirements, financial guarantees, risk assessments, and environmental management plans. The CCUS Regulations also ensures that offshore operators are bound by stringent monitoring, reporting, and post-closure obligations.<\/p>\n<p>Both government and industry are promoting the development and use of blue hydrogen and green hydrogen. The Ministry of Science, Technology an Innovation published the Hydrogen Economy &amp; Technology Roadmap in 2023 to guide the overall development of the hydrogen agenda in Malaysia. PETRONAS\u2019 clean energy company GENTARI is promoting and investing in hydrogen solutions whilst international companies, including INEOS, Sumitomo and Samsung Engineering, are collaborating in hydrogen projects in Malaysia. The Sarawak government has also implemented many hydrogen initiatives and projects as Sarawak generates green electricity which can be utilised for the production of green hydrogen.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">2935<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/128716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=128716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}