By Dorcas Ting
KUCHING, Jan 21: Five subsidiaries of Petroliam Nasional Berhad (PETRONAS) have asked the Kuching High Court for leave to initiate a judicial review over RM120 million in fines issued by the Sarawak Gas Distribution Director and Sarawak Minister of Utilities and Telecommunications Dato Sri Julaihi Narawi.
The case came up for the first hearing today before High Court Judge Dean Wayne Daly.
Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd, Malaysia LNG Tiga Sdn Bhd, PETRONAS Carigali Sdn Bhd and PETRONAS LNG 9 Sdn Bhd were earlier penalised for allegedly operating in Sarawak without the required distribution licences, which the authorities say are mandatory under Section 7 of the Distribution of Gas Ordinance (DGO) 2016.
Section 21A of the same Ordinance sets out a maximum penalty of RM20 million for each offence. The subsidiaries were issued eight notices, each carrying a RM15 million penalty for failing to apply for the licences.
Representing the five companies, lawyers Khoo Guan Huat and Alex Ngu Sze Shae argued that the DGO 2016 should not apply to the subsidiaries’ operations, and that the penalties were therefore unlawfully imposed.
Appearing for the respondents were State Legal Counsel Dato Sri JC Fong and State Senior Counsel Mohd Adzrul Adzlan from the State Attorney-General’s Chambers, while Senior Federal Counsel Ahmad Hanir Hambaly represented the Federal Attorney-General’s Chambers.
Judge Dean Wayne set Feb 3 for his decision on whether to grant leave for the judicial review.
The case comes amid ongoing jurisdictional questions surrounding regulatory authority over petroleum-related activities in Sarawak. In recent years, the State has introduced new laws and frameworks to assert control over gas distribution and licensing, including the DGO 2016.
Sarawak has maintained that companies operating within its borders must obtain licences issued under state laws, while PETRONAS subsidiaries have previously contended that their activities fall under federal petroleum legislation. The move to impose fines under the DGO 2016 marks one of the more significant enforcement actions to date, involving substantial penalties and major operators in the LNG sector. — DayakDaily
