11-8-75 (FUEMSSO News Service)

British Petroleum concern over Petroleum Development Act

British Petroleum Oil Co. (BP), whose operations in Kuwait were taken over by the Kuwaiti Government earlier this year, said that the amended Petroleum Development Act, 1974 could spark off widespread uncertainty in Malaysia's budding oil industry and in other investment sectors. According to the company, the issuing of management shares will give Petronas (the Malaysian state-run oil company: Petroleum Nasional) the power to hire and dismiss personnel in any oil concern in Malaysia.

BP, which has more than 90 retail outlets in Malaysia, has valued its operations in Malaysia at around S$43.1m. It has no production or refining interests in Malaysia. Other foreign companies operating in Malaysia are Royal Dutch/Shell, Exxon, Mobil Oil and Caltex Petroleum, a joint venture of Taxaco and Standard Oil of California

The Prime Minister of Malaysia, Tun Abdul Razak, assured oil companies in London on April 15th that the Malaysian Government has no intention of nationalising the oil industry; its main concern is to regulate and control the industries and enable Malaysians to participate in the industry through the Government. Meanwhile, Petronas has signed petroleum agreements with the states of Perak, Malacca and Perils.