MALAYSIA-THAILAND JOINT AUTHORITY ACT 1990

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 440 MALAYSIA-THAILAND JOINT AUTHORITY ACT 1990 As at 1 December 2011 2 MALAYSIA-THAILAND JOINT AUTHORITY ACT 1990 Date of Royal Assent … … … … … 22 August 1990 Date of publication in the Gazette … … 30 August 1990 English text to be authoritative … … … P.U. (B) 166/1994 PREVIOUS REPRINTS First Reprint… ... ... ... 2001 Second Reprint ... ... ... 2006 3 LAWS OF MALAYSIA Act 440 MALAYSIA-THAILAND JOINT AUTHORITY ACT 1990 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 2. Interpretation PART II MALAYSIA-THAILAND JOINT AUTHORITY 3. Establishment of Malaysia-Thailand Joint Authority 4. Powers and functions of Joint Authority 5. Exploration and exploitation of natural resources PART III THE JOINT DEVELOPMENT AREA 6. The Joint Development Area PART IV ROYALTY 7. Royalty 4 PART V FINANCIAL PROVISIONS Section 8. Cost, benefit and annual payment PART VI MALAYSIA-THAILAND JOINT AUTHORITY FUND 9. Establishment of Fund 10. Application of Fund 11. Reserve fund 12. Restriction on financial dealings 13. Liability of Joint Authority not the responsibility of Governments PART VII CONTRACT FOR EXPLORATION AND EXPLOITATION 14. Prohibition on exploration or exploitation of natural resources without contract PART VIII REGULATIONS 15. Power of Minister to make regulations PART IX OFFICERS AND JURISDICTION OF COURTS 16. Public servants 17. Jurisdiction of Sessions Court 5 PART X JURISDICTION Section 18. Jurisdiction over Joint Development Area PART XI RIGHTS IN SUPERJACENT WATERS 19. Right, liberty or privilege in superjacent waters PART XII OFFENCES AND PENALTIES 20. Contravention of subsection 14(1) 21. Other offences 22. Offence by body corporate 23. Director and officer of body corporate may be charged jointly with body corporate 24. Penalty for offence due to anything done or omitted by agent PART XIII GENERAL 25. This Act to prevail over other laws 26. Charge and control of this Act SCHEDULE 7 LAWS OF MALAYSIA Act 440 MALAYSIA-THAILAND JOINT AUTHORITY ACT 1990 An Act to give effect to an agreement on the establishment and operation of the Malaysia-Thailand Joint Authority and to make provisions connected therewith. [23 January 1991, P.U. (B) 36/1991] WHEREAS pursuant to the Memorandum of Understanding between Malaysia and the Kingdom of Thailand on the Establishment of a Joint Authority for the Exploitation of the Resources of the Seabed in a Defined Area of the Continental Shelf of the Two Countries in the Gulf of Thailand dated 21 February 1979, the Agreement on the Constitution and Other Matters Relating to the Establishment of the Malaysia-Thailand Joint Authority was signed on 30 May 1990, at Kuala Lumpur, Malaysia, between the Government of Malaysia and the Government of the Kingdom of Thailand; NOW THEREFORE, BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong, with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by authority of the same, as follows: PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Malaysia-Thailand Joint Authority Act 1990. 8 Laws of Malaysia ACT 440 (2) This Act shall come into force on such date as the Minister may, by notification in the Gazette, appoint. Interpretation 2. In this Act, unless the context otherwise requires― “Agreement” means Agreement on the Constitution and Other Matters Relating to the Establishment of the Malaysia-Thailand Joint Authority signed by the Government of Malaysia and the Government of the Kingdom of Thailand on 30 May 1990, at Kuala Lumpur, Malaysia; “Fund” means the Malaysia-Thailand Joint Authority Fund referred to under section 9; “Governments” means the Government of Malaysia and the Government of the Kingdom of Thailand; “Joint Authority” means the Malaysia-Thailand Joint Authority; “Joint Development Area” means the defined area of the continental shelf of Malaysia and the Kingdom of Thailand in the Gulf of Thailand described under section 6; “line dividing jurisdiction” means the straight line joining the following coordinated points: (A) N 6° 50'.O (X) N 7° 35'.O E 102° 21'.2; E 103° 23'.0 which divides civil and criminal jurisdiction in the Joint Development Area; “Memorandum of Understanding, 1979” means the Memorandum of Understanding between Malaysia and the Kingdom of Thailand on the Establishment of a Joint Authority for the Exploitation of the Resources of the Sea-Bed in a Defined Area of the Continental Shelf of the Two Countries in the Gulf of Thailand, signed on 21 February 1979; Malaysia-Thailand Joint Authority 9 “Minister” means the Minister charged with the responsibility for petroleum; “natural resources” means any non-living natural resources including any minerals, mineral oils and metals; “petroleum” means any mineral oil or relative hydrocarbon and natural gas existing in its natural condition and casinghead petroleum spirit, including bituminous shales and other stratified deposits from which oil can be extracted. PART II MALAYSIA-THAILAND JOINT AUTHORITY Establishment of Malaysia-Thailand Joint Authority 3. (1) There is hereby established a body by the name of the Malaysia-Thailand Joint Authority (referred to in this Act as “the Joint Authority”). (2) The Joint Authority shall have a juristic personality and shall be domiciled in Malaysia and the Kingdom of Thailand. (3) The Joint Authority shall be a body corporate and, subject to and for the purposes of this Act, may enter into contracts, and may acquire, purchase, take, hold and enjoy any movable and immovable property of every description, excluding land, and may convey, assign, surrender, charge, mortgage, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Joint Authority upon such terms as it deems appropriate. Powers and functions of Joint Authority 4. The Joint Authority shall have such powers and perform such functions as are necessary for the performance of its duties and the enjoyment of its rights and privileges under, and to the extent not inconsistent with, this Act. 10 Laws of Malaysia ACT 440 Exploration and exploitation of natural resources 5. The Joint Authority hereby is vested with and assumes the exclusive rights, powers, liberties and privileges of exploring and exploiting the natural resources, in particular petroleum, in the Joint Development Area. PART III THE JOINT DEVELOPMENT AREA The Joint Development Area 6. The Joint Development Area shall be the area bounded by straight lines joining the following coordinated points: (A) (B) (C) (D) (E) (F) (G) N 6° 50'.0 N 7° 10'.25 N 7° 49'.0 N 7° 22'.0 N 7° 20'.0 N 7° 03'.0 N 6° 53'.0 E102° 21'.2; E 102° 29'.0 E 103° 02'.5 E 103° 42'.5 E 103° 39'.0 E 103° 06'.0 E 102° 34'.0 and shown in the relevant part of the British Admiralty Chart No. 2414, Edition 1967, a reproduction of which is as in the Schedule. PART IV ROYALTY Royalty 7. The Joint Authority shall pay to each of the Governments royalty in the amount of five per centum of gross production of petroleum, in the manner and at such times as may be prescribed by regulations. Malaysia-Thailand Joint Authority 11 PART V FINANCIAL PROVISIONS Cost, benefit and annual payment 8. (1) All costs incurred and benefits derived by the Joint Authority from activities carried out in the Joint Development Area shall be equally borne and shared by the Governments. (2) Until such time as the Joint Authority shall have sufficient income to finance its annual operational expenditure, the Government of Malaysia shall pay to the Fund such annual payments as may be determined in accordance with the Agreement subject to equal payments being made by the Government of the Kingdom of Thailand. PART VI MALAYSIA-THAILAND JOINT AUTHORITY FUND Establishment of Fund 9. (1) For the purposes of this Act and the Agreement, there is hereby established a fund called the Malaysia-Thailand Joint Authority Fund (referred to in this Act as “the Fund”) to be administered and controlled by the Joint Authority. (2) The assets of the Fund shall include ― (a) such contributions as may be provided by the Governments under the Agreement, and referred to under subsection 8(2); (b) moneys earned by the operation of any projects, schemes or enterprises financed from the Fund; (c) moneys earned or arising from any properties, investments, mortgages, or charges acquired by or vested in the Joint Authority; 12 Laws of Malaysia ACT 440 (d) moneys borrowed by the Joint Authority for the purposes of meeting any of its obligations or discharging any of its duties; and (e) any other moneys or properties which may in any manner become payable to or vested in the Joint Authority in respect of any matters incidental to its powers and duties. Application of Fund 10. The Fund may be used for ― (a) defraying such expenditures as the Joint Authority may incur in carrying out its functions and exercising its powers in accordance with the approved budgetary provisions and subject to any regulation made under section 15; (b) settling any moneys borrowed by the Joint Authority under paragraph 12(1)(c), including interests and other charges incidental to the borrowing; (c) such investments as the Joint Authority may decide subject to the approval of the Governments; and (d) subject to section 11, payment of moneys in equal amounts to the Governments out of income accruing to the Joint Authority after deducting the expenditures referred to in paragraphs (a) and (b) including such other expenditures as may be agreed to by the Governments. Reserve Fund 11. The Joint Authority shall establish and manage a reserve fund within the Fund in accordance with such terms and conditions as the Governments may jointly decide. Malaysia-Thailand Joint Authority 13 Restriction on financial dealings 12. (1) The Joint Authority shall not, without the prior approval of the Governments ― (a) give financial assistance to any company, body or person by the taking up of shares or debentures or by way of loan, advance, grant or otherwise; (b) purchase, underwrite or otherwise acquire any stocks and shares in any public or private company; or (c) borrow money, or enter into any guarantee or indemnity involving financial liability. (2) In giving any consent under subsection (1), the Governments may jointly impose such terms and conditions as they may deem appropriate. Liability of Joint Authority not the responsibility of Governments 13. Nothing in this Act shall be construed as creating any responsibility whatsoever for the Government of Malaysia or the Government of the Kingdom of Thailand in respect of any liability of the Joint Authority. PART VII CONTRACT FOR EXPLORATION AND EXPLOITATION Prohibition on exploration or exploitation of natural resources without contract 14. (1) Notwithstanding the provisions of any other written law, no business of exploration and exploitation of any natural resources, including petroleum, may be carried out in the Joint Development Area by any person other than the Joint Authority unless there is in respect of any such business a contract entered into between the Joint Authority and such person to explore and exploit such natural resources. 14 Laws of Malaysia ACT 440 (2) A contract referred to under subsection (1) shall require the prior approval of the Governments. (3) Subject to subsection (4), a contract referred to under subsection (1) for the purpose of the exploration and exploitation of petroleum shall be a production sharing contract and shall include, amongst others, the following terms and conditions: (a) for the purpose of section 7, payment in the amount of ten per centum of gross production of petroleum by the contractor to the Joint Authority as royalty in the manner and at such times a