Kuala lumpur: The ownership of Petroliam Nasional Bhd (Petronas) will continue to reside with the federal government, as measures are being taken to enhance state participation through strategic collaborations, joint project implementations, and engagement in the value chain, stated Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said.

According to BERNAMA News Agency, Azalina emphasized that the federal government’s strategy is in line with an inclusive federal structure, ensuring sustained benefits for all involved parties. She confirmed that the federal government remains the sole proprietor of Petronas, which is incorporated under the Companies Act 1965 as Malaysia’s national oil and gas company.

Azalina clarified that the Petroleum Development Act 1974 (Act 144) grants Petronas ownership of petroleum resources, endowing it with exclusive rights, powers, freedoms, and privileges to explore, manage, and develop petroleum resources across the country, including onshore, offshore, and within Malaysian waters. Her remarks were made in response to a query posted on the Parliament’s website, addressing a question from Datuk Seri Dr Jeffrey Kitingan (GRS-Keningau) about the possibility of distributing 50 percent of Petronas shares to oil- and gas-producing states such as Sarawak, Sabah, Terengganu, and Kelantan.

Jeffrey suggested that such distribution could be a fundamental step towards strengthening the Malaysian Federation, while also reducing politicization and dissatisfaction over oil and gas rights. In response, Azalina noted that while the federal government retains ownership of Petronas, the current approach ensures that producing states receive direct benefits from the petroleum industry through cash payments and various commercial collaborations.

Azalina further added that overall revenues from the petroleum sector are equitably distributed across the nation in accordance with national development needs.