Petronas files Federal Court motion seeking regulatory clarity for Sarawak operations

KUCHING (Jan 12): Petroliam Nasional Berhad (Petronas) has filed a motion at the Federal Court in Putrajaya to seek clarity on the applicable regulatory framework governing its operations in Sarawak.

The respondents are the federal government and Sarawak government, the national oil and gas firm said in a statement.

The application seeks for determination by the apex court on the legal position applicable to Petronas’ operations in Sarawak to ensure that the company continues to operate in full compliance with the applicable laws and sound 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,” said Petronas.

“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.”

Petronas encouraged all parties to respect and allow the judicial process to take its course and be resolved by the Federal Court, and refrain from public commentary.

In the meantime, it remains committed to safe, reliable and efficient operations in Sarawak.

“Business activities will continue as usual. Petronas will continue to strengthen its relationships with Sarawak’s communities and industries and work constructively towards arrangements that would both advance Sarawak’s development aspirations and ensure Malaysia’s prosperity,” it said.