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Petronas had formally requested the apex court to expedite the matter, with the Federal Court initially scheduled to deliver its ruling on February 3. – AFP photo
KUCHING (Jan 20): The Federal Court in Kuala Lumpur has fixed March 16 to decide whether Petroliam Nasional Berhad (Petronas) should be granted leave to seek clarity on the regulatory framework governing its operations in Sarawak.
The proceeding today was conducted via Zoom, with the federal and Sarawak governments named as respondents, represented by their respective Attorney-General’s Chambers.
Petronas had formally requested the apex court to expedite the matter, with the Federal Court initially scheduled to deliver its ruling on February 3.
On January 12, Petronas filed the motion in Putrajaya, seeking the court’s determination on the legal position applicable to its operations in Sarawak to ensure compliance with relevant laws and good governance practices.
“It is not intended to challenge Sarawak’s development aspirations or hinder the role of Petroleum Sarawak Berhad (Petros) in the state’s energy sector.
“The decision follows constructive engagements since 2024 with Petros and both the federal and state governments through a series of dialogues and negotiations,” Petronas said in a statement.
“While progress has been made on many commercial arrangements and partnerships – including the signing of Commercial Settlement Agreement (CSA) in 2020 – there have been differences which led to uncertainty in respect of the obligations applicable to Petronas,” it added.
In a related development, a Kuching High Court case involving Petros against Petronas over a bank guarantee of RM7.95 million has been postponed to February 26.
The hearing, initially scheduled for January 30, was delayed following directions from the court, according to a source familiar with the matter.
The dispute centres on Petros’ attempt to reclaim RM7.95 million paid to Petronas after the company enforced a bank guarantee in October 2024.
This followed Petros’ refusal to settle payment for gas supplied about two months earlier.
Petros contends that Petronas’ enforcement was improper, arguing that the national oil company does not hold a valid licence under Sarawak’s Distribution of Gas Ordinance (DGO) 2016 to supply gas within the state.
Separately, a Kuching High Court ruling on a leave application for judicial review initiated by five Petronas subsidiaries against the State Ministry of Utility and Telecommunication and the State Director of Gas Distribution has been rescheduled from February 3 to 2.30pm on February 6.
The five subsidiaries — Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd, Malaysia LNG Tiga Sdn Bhd, Petronas Carigali Sdn Bhd and Petronas LNG 9 Sdn Bhd — are seeking leave to challenge penalties totalling RM120 million imposed by the Sarawak Gas Distribution Director and the ministry.
The penalties were issued for failing to apply for licences to operate in Sarawak, as required under Section 7 of the DGO 2016.
Under Section 21A of the ordinance, the maximum penalty is RM20 million per case.
However, the five subsidiaries received eight notices, with RM15 million imposed for each offence.
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