By Dorcas Ting
KUCHING, April 28: The Kuching High Court today dismissed Petroliam Nasional Berhad’s (PETRONAS) application to stay proceedings in a case brought by Petroleum Sarawak Berhad (Petros) over a bank guarantee dispute tied to gas supply.
Judicial Commissioner Datuk Faridz Gohim Abdullah ruled that PETRONAS failed to show exceptional or compelling reasons to justify delaying the case. With the dismissal, the main hearing for Petros’ originating summons (OS) against PETRONAS is now set to proceed on June 11, 2025.
Today’s decision follows strong opposition from both the Sarawak government and Petros against PETRONAS’ bid for a stay. In court submissions earlier this month, they argued that PETRONAS’ move was legally unfounded and aimed at delaying the Kuching case, which concerns the enforcement of a bank guarantee under a Gas Sales Agreement.
PETRONAS argued that the Kuching proceedings should be paused pending the outcome of a related case it filed in the Kuala Lumpur High Court. However, Petros and the Sarawak government countered that the two cases involve different contracts and parties, with the Kuala Lumpur suit still at a preliminary stage.
Petros and the Sarawak government accused PETRONAS of forum shopping and abusing the court process to avoid facing imminent judicial scrutiny in Sarawak.
They also stressed that delaying the Kuching case would harm the public interest by stalling important constitutional issues related to Sarawak’s rights over its energy resources under the Malaysia Agreement 1963 (MA63).
With today’s dismissal, the path is clear for the Kuching High Court to move forward with hearing Petros’ challenge against Petronas—a case that could have significant implications for Sarawak’s regulatory autonomy in the oil and gas sector.
Petros has taken PETRONAS to court over the demand for RM7,955,208.28 by PETRONAS on a bank guarantee given by Petros. — DayakDaily
