By Dorcas Ting
KUCHING, April 23: The Sarawak government and State energy company Petroleum Sarawak Bhd (Petros) have mounted strong opposition to PETRONAS’ bid to stay proceedings in the Kuching High Court, urging the court to reject what they described as a legally baseless and strategically motivated delay.
In separate submissions, both parties argued that the stay application—filed just days before the scheduled hearing—was a blatant attempt by PETRONAS to forum shop and avoid facing judicial scrutiny in Sarawak.
Represented by counsels Sim Hui Chuang and Lim Lip Sze of Reddi & Co, Petros contended that PETRONAS’ application [Enclosure 38] lacked merit and amounted to an abuse of process.
The dispute before the Kuching court centers on a bank guarantee tied to a Gas Sales Agreement (GSA), while the case Petronas filed in Kuala Lumpur involves different contracts and parties.
“This is a clear case of forum shopping,” Petros’ submission stated. “PETRONAS is trying to derail a trial-ready case with vague claims of overlapping issues in an unrelated suit.”
Petros stressed that the Kuching case has reached its final stage, with all affidavits and submissions filed. A hearing date had been fixed for April 16, 2025. The Kuala Lumpur proceedings, meanwhile, are still at the pre-trial stage with no confirmed hearing date.
Represented by State Legal Counsel Dato Sri JC Fong, the Sarawak government echoed Petros’ position, describing the stay application as a “blatant abuse of process”.
The State government warned that granting a stay would unjustly delay the resolution of constitutional issues crucial to Sarawak’s rights under the Distribution of Gas Ordinance 2016 and the Malaysia Agreement 1963 (MA63).
“Delaying this case would harm the public interest. It is vital that the constitutional questions raised be resolved without undue delay.”
The government further noted that both it and the Federal government have been granted amicus curiae status in the Kuching proceedings, allowing them to assist the court without needing full party status. Their involvement ensures that constitutional arguments can be addressed fully without depending on the Kuala Lumpur suit.
PETRONAS, represented by counsel Alex Ngu, argued that the Kuching case should be stayed until the full and final disposal—including all appeals—of the related Kuala Lumpur High Court matter.
The company claims that constitutional and legal issues surrounding Sarawak’s Distribution of Gas Ordinance 2016 (DGO), as well as overlapping government interests, necessitate a unified judgment to prevent inconsistent findings.
According to PETRONAS, the KL proceedings involve both the Federal and Sarawak Governments as full parties, whereas they only appear as amicus curiae in the Kuching case.
PETRONAS argued this difference in status could affect the robustness of constitutional arguments and that the KL suit, which includes Shell MDS as a party, encompasses broader contractual questions that might impact the current dispute. – DayakDaily
