CONTINENTAL SHELF ACT 1966

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 83 CONTINENTAL SHELF ACT 1966 As at 1 December 2011 2 CONTINENTAL SHELF ACT 1966 First enacted … ... … … … … 1966 (Act No. 57 of 1966) Revised ... … … … 1972 (Act 83 w.e.f. 1August 1972) … … Latest amendment made by Act A1351 which came into operation on ... ... ... ... ... ... 1 May 2009 PREVIOUS REPRINTS First Reprint Second Reprint Third Reprint ... ... ... ... ... 1994 ... ... ... ... ... 1999 ... ... ... ... ... 2006 3 LAWS OF MALAYSIA Act 83 CONTINENTAL SHELF ACT 1966 ARRANGEMENT OF SECTIONS Section 1. Citation 2. Interpretation 2A. The delimitation of the continental shelf between Malaysia and a country with opposite or adjacent coasts 2B. Continental shelf limit and continental margin 3. Rights with respect to continental shelf 4. Mining within the continental shelf 4A. Financial obligation 5. Application of criminal and civil law 6. Regulations 7. Saving 5 LAWS OF MALAYSIA Act 83 CONTINENTAL SHELF ACT 1966 An Act relating to continental shelf of Malaysia, the exploration thereof and the exploitation of its natural resources and for matters connected therewith. [Peninsular Malaysia—28 July 1966; Sabah & Sarawak—8 November 1969, P.U. (A) 467/1969] Citation 1. (1) This Act may be cited as the Continental Shelf Act 1966. (2) (Omitted). Interpretation 2. In this Act, unless the context otherwise requires— “continental shelf” means the sea-bed and subsoil of the submarine areas that extend beyond the territorial sea— (a) throughout the natural prolongation of the land territory of Malaysia to the outer edge of the continental margin as determined in accordance with section 2B; or (b) to a distance of two hundred nautical miles from the baselines from which the breadth of the territorial sea is measured in accordance with the Baselines of Maritime Zones Act 2006 [Act 660] where the outer edge of the continental margin does not extend up to that distance, but shall not affect the territory of the States or the limits of the territorial waters of the States and the rights and powers of the State Authorities therein; 6 Laws of Malaysia ACT 83 “natural resources” means— (a) the mineral and other natural non-living resources of the sea-bed and subsoil; and (b) living organisms belonging to sedentary species, that is to say, organisms which, at the harvestable stage, either are immobile on or under the sea-bed or are unable to move except in constant physical contact with the seabed or the subsoil; “petroleum” includes any mineral oil or relative hydrocarbon and natural gas existing in its natural condition in strata, but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation. The delimitation of the continental shelf between Malaysia and a country with opposite or adjacent coasts 2A. Where there is an agreement in force relating to the delimitation of the continental shelf between Malaysia and a country with an opposite or adjacent coast, any question relating to the delimitation of the continental shelf shall be determined in accordance with the provisions of that agreement. Continental shelf limit and continental margin 2B. (1) The continental shelf of Malaysia shall not extend beyond the limits provided for in subsections (3), (4), (5) and (6). (2) The continental margin comprises the submerged prolongation of the land mass of Malaysia and consists of the sea-bed and subsoil of the shelf, the slope and the rise but does not include the deep ocean floor with its oceanic ridges or the subsoil thereof. (3) Wherever the continental margin extends beyond two hundred nautical miles from the baselines from which the breadth of the territorial sea is measured, the outer edge of the continental margin shall be established by either— (a) a line delineated in accordance with subsection (7) by reference to the outermost fixed points at each of which Continental Shelf 7 the thickness of sedimentary rocks is at least one percent of the shortest distance from such point to the foot of the continental slope; or (b) a line delineated in accordance with subsection (7) by reference to fixed points not more than sixty nautical miles from the foot of the continental slope. (4) For the purpose of subsection (3), in the absence of evidence to the contrary, the foot of the continental slope shall be determined as the point of maximum change in the gradient at its base. (5) The fixed points comprising the line of the outer limits of the continental shelf on the sea-bed, drawn in accordance with subsection (3), either shall not exceed three hundred and fifty nautical miles from the baselines from which the breadth of the territorial sea is measured or shall not exceed one hundred nautical miles from the two thousand and five hundred metre isobath, which is a line connecting the depth of two thousand and five hundred metres. (6) Notwithstanding subsection (5), on submarine ridges, the outer limit of the continental shelf shall not exceed three hundred and fifty nautical miles from the baselines from which the breadth of the territorial sea is measured but does not include submarine elevations that are natural components of the continental margin such as its plateaux, rises, caps, banks and spurs. (7) The outer limits of the continental shelf shall be delineated, where that shelf extends beyond two hundred nautical miles from the baselines from which the breadth of the territorial sea is measured, by straight lines not exceeding sixty nautical miles in length, connecting fixed points, defined by coordinates of latitude and longitude. (8) This section shall be without prejudice to the question of delimitation of the continental shelf between Malaysia and its neighbouring countries with opposite or adjacent coasts. Rights with respect to continental shelf 3. (1) All rights with respect to the exploration of the continental shelf and the exploitation of its natural resources are hereby vested in Malaysia and shall be exercisable by the Federal Government. 8 Laws of Malaysia ACT 83 (2) If Malaysia does not undertake to exercise the rights with respect to the exploration of the continental shelf or the exploitation of its natural resources, no one or no other country may exercise such rights except with the express consent of Malaysia. Mining within the continental shelf 4. (1) No person shall explore, prospect or bore for or carry on any operations for the getting of petroleum in the sea-bed or subsoil of the continental shelf except under and in accordance with the Petroleum Mining Act 1966 [Act 95]. (2) For the purposes of the following subsections, the expression “minerals” shall be construed to mean minerals other than petroleum. (3) No person shall explore, prospect or bore for or carry on any operations for the getting of minerals in the sea-bed or subsoil of the continental shelf except in pursuance of a licence issued under the following subsections. (4) The Minister may from time to time, on an application made in that behalf, grant to any person a licence authorizing the person to explore, prospect, bore and mine for and to carry on operations for the getting of minerals of any specified kind in any specified area of the continental shelf. (5) Every application for a licence and every licence granted under subsection (4) shall be in such form and subject to the payment of such fees and other payments as may be prescribed by the Minister and be subject to such conditions as the Minister, when granting the licence, thinks fit to impose in the circumstances of each case, including, but without limiting the generality of the foregoing provisions of this section, conditions requiring the licensee— (a) to comply with such conditions as to safety as are specified in the licence; and (b) to pay to the Federal Government in respect of any minerals recovered by the licensee from the continental shelf such royalties as are specified in the licence. (5A) The Minister may terminate any licence if the licensee— Continental Shelf 9 (a) has failed to comply with any provisions of this Act or any regulations made under this Act; (b) has failed to comply with any conditions of the licence; or (c) has been convicted of an offence under this Act or any regulations made under this Act. (6) The grant of a licence under subsection (4) shall in every case be in the absolute discretion of the Minister and any number of licences may be granted to the same person; and every licence may be so granted that the rights thereunder are to be enjoyed by the licensee in common with other licensees to whom licences under subsection (4) may have been granted or may thereafter be granted. (7) Any person who explores, prospects, bores or mines for, or carries on operations for the recovery of any minerals in the seabed or subsoil of the continental shelf otherwise than in pursuance of a licence under subsection (4) and in accordance with the conditions of the licence (not being a condition relating to the payment of royalties to the Federal Government) shall be guilty of an offence, and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding ten years or to both; and all machinery, tools, plant, buildings and other property together with any minerals or other products which may be found upon or proved to have been obtained from the area of the continental shelf so unlawfully explored, prospected or mined shall be liable to forfeiture. Financial obligation 4A. Any financial obligation for purposes of the exploitation of the non-living resources of the continental shelf beyond two hundred nautical miles will be in accordance with Part VI of the 1982 United Nations Convention on the Law of the Sea. Application of criminal and civil law 5. (1) Subject to this Act, for the purposes of this Act and of every other written law (whether enacted before or after the passing of this Act) for the time being in force in Malaysia— 10 Laws of Malaysia ACT 83 (a) every act or omission which takes place on or under or above, or in any waters within five hundred metres of, any installation or device (whether temporary or permanent) constructed, erected, placed, or used in, on, or above the continental shelf in connection with the exploration of the continental shelf or the exploitation of its natural resources shall be deemed to take place in Malaysia; (b) every installation or device and any waters within five hundred metres of an installation or device as aforesaid shall be deemed to be situated in Malaysia, and for the purposes of jurisdiction shall be deemed to be situated in that part of Malaysia above highwater mark at ordinary spring tides which is nearest to that installation or device; (c) every court in Malaysia which would have jurisdiction (whether civil or criminal) in respect of that act or omission if it had taken place in Malaysia shall have jurisdiction accordingly; (d) every power of arrest or of entry or search or seizure or other power that could be exercised under any written law (whether enacted before or after the passing of this Act) in respect of any such act or omission or suspected act or omission if it had taken place or was suspected to have taken place in Malaysia may be exercised on or in respect of any such installation or device or any waters within five hundred metres thereof as if the installation or device or waters were in Malaysia; and (e) without prejudice to the Customs Act 1967 [Act 235], every installation or device, and any materials or parts used in the construction of an installation or device, which are brought into the waters above the continental shelf from parts beyond the seas shall be deemed to have been imported at the time when the installation or device is constructed, erected, or placed in, on, or above the continental shelf in con