Petronas reportedly mulls legal avenues as Sarawak moves for greater control over oil and gas

KUCHING (Sept 7): Petroliam Nasional Berhad (Petronas) is reportedly mulling over filing a court injunction to maintain as the sole guardian of Malaysia’s oil and gas resources.

Channel News Asia (CNA) quoted government officials close to the situation as saying such a move was mooted in light of a determined challenge by Sarawak for greater control of the trading and extraction of gas and other oil-related products in the state.

It was understood a court injunction would temporarily halt any action Sarawak could take against Sarawak.

CNA reported that unless the Sarawak government decided to resume negotiations with Petronas over the control of natural resources, the dispute could escalate into a full-blown court battle.

The government officials told CNA on anonymity that Prime Minister Datuk Seri Anwar Ibrahim wanted Sarawak’s demands to be managed “at the corporate level with Petronas without involving the federal government”.

They, however, said no middle ground had been reached between Petronas and the Sarawak government.

Sarawak has issued an ultimatum to Petronas to finalise an agreement granting the state complete rights to supervise the trading of oil and gas extracted from the state by Oct 1.

According to CNA, Sarawak’s Attorney General’s Chambers senior legal counsel Joseph Chioh claimed to be unaware of the options being considered by Petronas and declined to comment on the ongoing negotiations with Petronas.

Petronas did not respond to a request to comment about the prospect of seeking legal action to counter the demand for it to surrender all rights over the distribution and sale of liquified natural gas (LNG) to Petroleum Sarawak Berhad (Petros), reported CNA.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has in recent months intensified the pressure on the Anwar administration for greater autonomy within the context of the Malaysia Agreement 1963.

CNA quoted the federal government as saying Sarawak’s probable and proven reserves of petroleum represented 60.87 per cent of the country’s total reserves, while Sabah’s made up about 18.8 per cent.

The report said Sarawak also accounted for close to 90 per cent of Malaysia’s LNG exports.