By DayakDaily Team
KUCHING, June 5: The High Court today dismissed two applications filed by Petroliam Nasional Berhad (PETRONAS) to adjourn or stay the hearing of a high-stakes legal battle brought by Petroleum Sarawak Berhad (PETROS) over a RM7.95 million gas supply dispute.
Judicial Commissioner Dato’ Faridz Gohim Abdullah rejected the applications, which were filed on May 22, 2025, and confirmed that the case will proceed as scheduled on June 11, 2025, at 9am.
At the heart of the case is PETROS’ application for a court declaration that PETRONAS’ demand for payment under a bank guarantee is “unconscionable and unlawful.”
PETROS contends that PETRONAS supplied natural gas to it without holding a valid licence under Section 7 of the Sarawak Distribution of Gas Ordinance, 2016 (DGO), rendering the demand for payment illegal.
PETROS argues the Court should not aid in enforcing payment for gas allegedly supplied in breach of Sarawak law.
PETRONAS, in its defence, asserts that it is legally authorised to distribute gas across Malaysia under the Petroleum Development Act 1974 (PDA), a federal law it claims supersedes the DGO.
However, the evolving legal framework has been complicated by a Joint Declaration signed on May 21, 2025 between Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. The declaration, filed in court by PETROS, explicitly states that both federal and Sarawak laws governing gas distribution in Sarawak must co-exist and be complied with by all parties—including PETRONAS and PETROS.
In dismissing PETRONAS’ bid to delay the proceedings, Faridz ruled that no special circumstances had been shown to justify a stay or adjournment. “The hearing of the case should not be further delayed,” he stated.
On the legal representation front, PETRONAS has secured ad hoc admission for senior Malayan Bar lawyers Datuk Cyrus Das and Khoo Guan Huat, granted by Sibu High Court Judge Wong Siong Tung on May 29, 2025. PETROS will be represented by veteran legal luminary Tan Sri Cecil Abraham, also admitted ad hoc to lead the case.
It is observed that the High Court’s upcoming ruling could have significant implications for the regulatory and constitutional landscape governing natural gas distribution in Sarawak.
A judgment is expected to address the interface between federal and Sarawak legislative authority, particularly in light of the Inter-Governmental Committee (IGC) Report 1962 and the Borneo States (Legislative Powers) Order 1963—both of which underpin Sarawak’s unique constitutional position and legislative autonomy under Article 95C of the Federal Constitution.
The outcome of this case is likely to provide long-awaited legal clarity on the scope of Sarawak’s control over its natural resources. — DayakDaily
