Petronas, Sarawak government seek separate hearings for oil and gas legal challenges

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PUTRAJAYA, Sept 24: Petroliam National Bhd (Petronas) and the Sarawak state government are seeking to have their petitions challenging the state and federal laws governing oil and gas matters heard separately by the Federal Court.

This was indicated to Federal Court judge Datuk Rhodzariah Bujang during a summons for direction proceeding today.

Petronas’ lawyer, Datuk Dr Cyrus Das, informed the court that the Sarawak state government had taken the position that the two petitions should not be consolidated.

He said the Sarawak state government also proposed that its case be heard first followed by the Petronas petition.

Das said Petronas, on the other hand, wanted its petition to be heard first, in accordance with the sequence in which the petitions were filed.

Das said Petronas filed its petition on Jan 10 this year and obtained leave under Article 4 (4) of the Federal Constitution on March 16 this year, while the Sarawak state government filed its petition on Feb 23.

He said the Petronas challenge concerned Sarawak state laws, while the Sarawak state government’s petition challenges federal laws.

“Unless there are compelling reasons from the Sarawak side as to why they should be heard first, I would say we follow the sequence in which the papers were filed,” he said.

Meanwhile, the Sarawak government also wants the Federal Court to decide a preliminary issue first concerning a colonial-era order – the Sarawak (Alteration of Boundaries) Order in Council 1954 – which determines the borders of Sarawak and Sabah.

Justice Rhodzariah subsequently fixed Oct 1 for further summons for direction proceeding to decide on the sequence in which the petitions will be heard, and on matters relating to the Sarawak government’s preliminary objection issues. The hearing of the petitions is tentatively scheduled for end of January next year.

On March 16 this year, the Federal Court granted leave to the national oil and gas company to commence proceeding to challenge the competency of the Sarawak State Legislature to enact certain laws and to declare several laws made by the Sarawak State Legislature invalid.

It claimed that the Sarawak State Legislature lacked the competence to enact, modify, amend or revise law with respect to matters under List 1 of the Federal List in the Ninth Schedule of the Federal Constitution.

The Sarawak government, meanwhile, filed a petition against the government of Malaysia and Petronas, seeking the Federal Court to determine the constitutional validity and continued applicability of several federal Acts to Sarawak.

The Sarawak government, among others, is seeking a declaration that the Petroleum Development Act 1974, the Continental Shelf Act 1966 and the Petroleum Mining Act 1966 as applied to Sarawak were unconstitutional and void ab initio (void from the beginning).

During today’s proceedings, besides Das, Petronas was also represented by lawyers Khoo Guan Huat, Datuk Azian Abd Aziz, Grace Teoh Wei Shan, Ahmad Faiz Razali, Khoo Yuan Ping and Alex Ngu. The Sarawak government was represented by senior state counsel Mohd Adzrul Adzlan, Sarawak counsel Richard Tie Sing Wan and Felicity Sharmela Thomas while senior federal counsel Ahmad Hanir Hambaly @ Arwi and federal counsel Imtiyaz Wizni Aufa Othman represented the federal government.

Mohd Adzrul told reporters that the state wants the preliminary issue regarding the Sarawak (Alteration of Boundaries) Order in Council 1954 to be heard as the state contends that the matter does not fall under the jurisdiction of the Federal Court. – TVS

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