Governing Standards for Malaysia Petroleum Operations

PETRONAS, the exclusive owner of Malaysia’s hydrocarbon resources, has issued the Governing Standards for Malaysia Petroleum Operations (“Governing Standards”) that set out PETRONAS’ standards and minimum requirements for the conduct of upstream oil and gas activities. 

Although the Governing Standards do not constitute binding regulations, operators that have signed a Petroleum Arrangement with PETRONAS are expected to adhere to the Governing Standards. While the Governing Standards are confidential and not publicly available, public sources indicate that they include requirements relating to flaring and venting. More specifically, the Governing Standards establish annual flaring and venting limits. Flaring and venting volumes must be reported to PETRONAS on a monthly basis. If the flaring and venting limits are exceeded, the operator must notify PETRONAS and provide a mitigation plan. PETRONAS can then decide to issue an exemption at its discretion. Public information also suggests that the Governing Standards require operators to report flaring and venting volumes to PETRONAS on a monthly basis.   

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