Sultan Ibrahim can steer Petronas into greater alignment with Middle East oil producers led by fellow royals ,away from its current splurge on questionable renewable projects. He will have 5 years to do so,after which his successor as Agong can do the same (and more)

 by Ganesh Sahathevan 

PETRONAS’ President & Group CEO Tengku Muhammad Taufik  presenting at an audience with His Majesty the Sultan of Johor, Sultan Ibrahim Ibni Sultan Iskandar

The next  King or Agong, Sultan Ibrahim Of Johor,  has proposed that the King rather than the Prime Minister, have ultimate control over Petronas.  As reported previously, His Majesty's wishes may be quite easily put into implemented by amending The Petroleum Development Act 1974. The amendment may not require any amendment to The Constitution, despite some noise that it must, as a precondition.

If permitted to do so Ibrahim of Johor can quickly  better align Petronas with the oil producers  of the Middle East ,which are led by fellow royals,who at COP28 have made very clear that oil and gas must continue to be explored, produced and refined. By doing so His Majesty would be steering Petronas away from its focus on renewables which appear to have  yet to provide results. 

Importantly ,as King Sultan Ibrahim will have only 5 years to do so, after which he is bound by law to handover to a successor. This would be an improvement over the current system where the Prime Minister can have control over Petronas indefinitely.  

TO BE READ WITH 

Sunday, December 10, 2023

Malaysia's incoming King , Sultan Ibrahim of Jonor,  wants The Petroleum Development Act 1974 amended so that Petronas is controlled by and reports to him and not the Prime Minister

 by Ganesh Sahathevan 

      Sultan Johor Backs Anwar Ibrahim’s Leadership and Prepares for Kingship

Malaysia's incoming Ruler, Sultan Ibrahim of Jonor,  wants The Petroleum Development Act 1974 amended  that Petronas reports to him and not the Prime Minister .

The Sultan told Strait Times Singapore: 

"If it comes to the Agong, it means you are not under the influence of anybody from the executive. Even Petronas shouldn't be under Parliament, report directly to me," he said, referring to the state oil giant, Malaysia's only Fortune 500 company which has contributed more than RM1 trillion to national coffers since its inception half a century ago.

The Act is clear in its wording and in its intent. The Prime Minister controls every facet of  Malaysia's  upstream and downstream  petroleum industry..

              PETROLEUM DEVELOPMENTACT 1974                                 

It is unclear how and when the Sultan intends for the Act to be amended so that power over Petronas to transferred to him.

END