Malaysia-Thailand Joint Authority (Standards of Petroleum Operations) Regulations 1997

Pursuant to Section 15 of the Malaysia-Thailand Joint Authority Act 1990, No. 440 the Minister may make regulations in respect of the conduct of or the carrying on of any business or service relating to the exploration and exploitation of the natural resources in the Joint Development Area. The present Regulations have been adopted on the basis of such provision.
The exploration or exploitation of the natural resources falling within the Joint Development Area may be conducted by persons other than the Joint Authority only upon specific contract. Regulation 3 hereto specifies the information to be submitted by the contractor to the Joint Authority for approval prior to any exploration activity in the contract area. The contractor shall not carry out any petroleum operations in any contract area in a manner that would interfere unjustifiably with navigation or fishing in the waters of the contract area or with the conservation of living resources of the sea. Moreover, the contractor shall take all necessary precautions, in accordance with good petroleum industry practice, in order to: (a) prevent leakage or seepage of petroleum into the sea or on the sea-bed; (b) prevent spilling of toxic fluids or toxic chemicals into the sea; (c) prevent damage to shallow fresh-water-bearing strata or subsurface water aquifer; (d) prevent damage to petroleum-bearing strata or formations; and (e) prevent entrance of water through wells to petroleum strata or formation, except where water is used in second stage production or for the purpose of maintaining the pressure at petroleum deposits (Reg. 5). Further provisions deal with drilling. Regulation 9 concerns the abandonment of wells. Regulation 20 concerns inspection.