Work as a team to develop Malaysia, PM tells Petronas, Petros

Anwar Ibrahim says the commercial agreement between Petronas and Petros must be expedited and finalised.

Anwar, who is also the finance minister, said that for both oil and gas firms to reach a consensus amid their ongoing dispute, Petronas and Petros must respect and recognise both state and federal rights and laws, Bernama reported.

“We have decided that the commercial agreement between Petronas and Petros must be expedited and finalised.

“There is no reason why this cannot be resolved,” Anwar was quoted as saying at the national-level Malaysia Day celebrations in Kuching, Sarawak, tonight.

Anwar added that there was no problem within the Malaysian federation that could not be resolved and settled.

“I am grateful that through this spirit (of the Malaysian federation), we have been able to implement various projects and programmes for the benefit of the people.”

Sarawak has sought greater control over oil and gas resources through Petros, appointing the state-owned company as the gas aggregator for its domestic market.

Petronas however maintains that its national role covers upstream management under the Petroleum Development Act 1974 and the preservation of Malaysia’s liquefied natural gas value chain, including existing export arrangements.

In May 2025, Putrajaya and Sarawak signed a joint declaration naming Petros as Sarawak’s gas aggregator while reaffirming Petronas’s continued role under the Petroleum Development Act.

However, in January, Petronas turned to the Federal Court seeking clarity over which laws govern its operations in Sarawak, saying differences remained over its regulatory obligations.

The following month, Sarawak filed its own petition to the apex court challenging the validity and continued application to the state of several federal petroleum laws, including the PDA, the Continental Shelf Act 1966 and the Petroleum Mining Act 1966.

In March, the Federal Court granted Petronas leave to proceed with its constitutional challenge.

Anwar announced in June that several important issues had been ironed out and that a final agreement was expected soon.