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Policy & Regulation

Political uncertainty shrouds outlook for Malaysia

Oil and gas projects in Sarawak are being held up by the struggle between the regional and federal governments for control of the state's resources Oil and gas projects in Sarawak are being held up by the struggle between the regional and federal governments for control of the state's resources.
By Damon Evans 28 March 2019 Asia Pacific / Policy & Regulation 0 34078
The Sarawak state legislative assembly building in Kuching. (PA)

The key issue: The state of Sarawak appears to have blocked development of Petronas’s Kasawari gas project as it seeks greater control of its hydrocarbon resources.

Interfax analysis: Development of Petronas’s Kasawari gas field, which holds an estimated 85 billion cubic metres of recoverable reserves and lies in an environmentally sensitive offshore area, cannot proceed until Malaysia’s eastern state of Sarawak gives its environmental approval. Such approval has not been forthcoming, fitting with Sarawak’s strategy of attempting to secure equity in Kasawari ahead of...