21st May 2018 13:04
LONDON (Alliance News) - Shares in Upland Resources Ltd rose on Monday as it noted that plans for greater independence for the Malaysian state of Sarawak in regulating upstream oil and gas were left unchanged by the recent national election, which saw a historic change in government.
Shares in the upstream oil and gas company were up 14% at 3.90 pence on Monday.
Earlier this month, Malaysia's 14th general election saw the Barisan Nasional coalition, which has governed the country since its independence in 1957, lose to the opposing coalition Pakatan Harapan, placing Mahathir Mohamad as the country's next prime minister.
Recently, Upland held meetings with the new Sarawakian state oil company Petroleum Sarawak Bhd (Petros), Brooke Dockyard & Engineering Works Corp, and others to discuss the future of the oil and gas industry in the state.
Petroleum Sarawak will become the issuer and regulator of permits to explore and develop hydrocarbon resources, and will bring into effect the existing Oil Mining Ordinance on July 1. Under this law, existing and new licence holders must apply to Petroleum Sarawak for new ones.
Upland Resources said that the preference of granting new permits to Sarawakian companies and their partners will be beneficial to the structure of its agreements and relationships in the state.
"During our visit to Kuching, we were pleased to see how the future is now unfolding in Sarawak. The recent national election result does not appear to have affected Sarawak's ambitions for their oil & gas industry, and Petros is clearly moving forward with its plans at a faster pace than we expected. Upland remains in a very good position, and I look forward to updating the market further as the situation progresses," said Chief Executive Officer Steve Staley.
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