Petronas gets leave to challenge Sarawaks O&G ordinances

Chief Judge of Malaya Hashim Hamzah, sitting as a single judge, allows Petronas's application to pursue its constitutional challenge.

Sitting as a single judge, Chief Judge of Malaya Hashim Hamzah made the decision after hearing submissions from Petronas’s lawyers, Cyrus Das and Khoo Guan Huat, Sarawak attorney-general Saferi Ali and the state government’s legal counsel JC Fong.

“(Petronas) has met the threshold for the court to hear its petition,” the judge said.

Earlier, Das said the Sarawak assembly had passed amendments to several ordinances, including the Distribution of Gas Ordinance (DGO) and Oil and Mining Ordinance, violating provisions under Sections 1(a), 8(c), 8(j) and 11(c) of the Ninth Schedule to the Federal Constitution.

Those provisions touch on treaties, trade, development of mineral resources, as well as production and distribution of power and energy, he said.

Das told the apex court that that only the Dewan Rakyat could pass laws relating to these matters, not the state assembly.

The lawyer added that amendments to the DGO passed in 2023 effectively made Petroleum Sarawak Bhd (Petros) the sole gas aggregator in Sarawak to “replace” Petronas.

Fong opposed Petronas’s bid to initiate the constitutional challenge on grounds that the application should be filed before the High Court.

He insisted that the state assembly had acted within its rights and jurisdiction in passing the relevant ordinances.

Senior federal counsel Ahmad Hanir Hambaly, appearing for the federal government, informed the court that Putrajaya had no objection to Petronas pursuing the constitutional challenge.

He added that the matter should go for a full hearing.

Hashim later ordered Petronas to file its petition detailing the impugned ordinances and provisions within 21 days.

Petronas previously said it brought the suit to have the Federal Court give a definitive determination on the legal position applicable to the petroleum sector in Sarawak.

It said it wanted to ensure its operations in the state complied with all applicable laws and governance practices.