PBB Youth: Petronas legal challenge undermines Sarawak’s O&G laws

KUCHING (Jan 14): Parti Pesaka Bumiputera Bersatu (PBB) Youth Wing has viewed Petroliam Nasional Berhad’s (Petronas) legal challenge to file a motion at the Federal Court in Putrajaya as amounting to the subversion of Sarawak’s laws.

The PBB Youth Wing said this decision can be interpreted as the national oil and gas company “attempting to subvert Sarawak’s regulatory framework and circumvent the provisions of the law overseeing the oil and gas industry in Sarawak”.

“It is indeed alarming to see that the company is resorting to turn to the courts despite continuous engagements by the Sarawak government with the federal government, with the objective of developing the state’s oil and gas sector,” said PBB Youth chief, Datuk Martin Ben in a statement.

“While we trust that the Court would be the best place to resolve legal disputes, however, it is more practical for these differences in view relating to Sarawak regulatory framework to be ironed through continuous discussions not only between Petronas and Petros (Petroleum Sarawak Berhad) but also between Prime Minister Datuk Seri Anwar Ibrahim and Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.”

Martin stressed that Sarawak’s laws must be complied by all if they were to do business in Sarawak and this principle extends to Petronas.

“As we are all aware, the federal government has accepted and recognised Petros as gas aggregator after a lengthy deliberation,” he explained.

“This recognition was even highlighted by the Prime Minister himself.”

“In fact, the Sarawak government and the federal government have signed a joint declaration in May, 2025 and reached an understanding whereby Sarawak’s laws are recognised.

“So, we question whether the decision by Petronas to bring the matter to court was made with the consent, approval and endorsement of the federal government.”

A national oil and gas company should not and must not go rogue and simply make a unilateral decision overlooking the sensitivities and intricacies of state-federal relations as it can be perceived as a federal overreach onto Sarawak rights, Martin argued.

“We are confident that Sarawak’s regulatory framework overseeing the oil and gas industry is grounded in law and affirmed by history.

“Sarawak rights are not to be questioned or negotiated upon.”

“We will continue to stand firm with the Premier in protecting and defending Sarawak rights and we have every confidence that Sarawak will weather this challenge and emerge stronger,” he said.