PBB Youth: PETRONAS legal move seen as attempt to subvert Sarawak oil and gas laws

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By DayakDaily Team

KUCHING, Jan 14: A legal move by Petroliam Nasional Bhd (PETRONAS) to seek clarification from the Federal Court on the laws governing its operations in Sarawak has been described as an attempt to subvert Sarawak’s oil and gas regulatory framework, raising serious concerns over respect for state laws and rights.

In a statement issued today, Parti Pesaka Bumiputera Bersatu (PBB) Sarawak Youth chief Datuk Martin Ben said PETRONAS’ decision to bring the matter to court could be interpreted as an effort to circumvent the provisions of Sarawak laws overseeing the oil and gas industry.

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He said it was alarming that the national oil and gas company had resorted to legal action despite continuous engagements between the Sarawak government and the federal government aimed at developing the State’s oil and gas sector.

“While we trust that the Court is the best place to resolve legal disputes, it is more practical for differences in views relating to Sarawak’s regulatory framework to be ironed out through continuous discussions — not only between PETRONAS and Petroleum Sarawak Berhad (PETROS), but also between Prime Minister Datuk Seri Anwar Ibrahim and Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg,” he said.

Martin stressed that Sarawak’s laws must be complied with by all parties if they are to do business in the State, and that this principle applies equally to PETRONAS.

He pointed out that the federal government has accepted and recognised PETROS as the gas aggregator after lengthy deliberations, a recognition that was even highlighted by the Prime Minister himself.

“In fact, the Sarawak government and the federal government signed a joint declaration in May 2025 and reached an understanding whereby Sarawak’s laws are recognised,” he said.

In this regard, Martin questioned whether PETRONAS’ decision to take the matter to court was made with the consent, approval, or endorsement of the federal government.

He cautioned that a national oil and gas company should not and must not go rogue by making unilateral decisions that overlook the sensitivities and intricacies of state–federal relations, as such actions could be perceived as federal overreach into Sarawak’s rights.

Martin said Sarawak’s regulatory framework governing the oil and gas industry is grounded in law and affirmed by history, stressing that Sarawak’s rights are not to be questioned or negotiated.

He added that PBB Sarawak Youth would continue to stand firm with the Premier in protecting and defending Sarawak’s rights, expressing confidence that Sarawak would weather the challenge and emerge stronger. — DayakDaily

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