By DayakDaily Team
KUCHING, Jan 30: The Federal Court has set March 16 to hear Petroliam Nasional Bhd’s (PETRONAS) application for leave to refer a legal question on the interpretation of the law concerning its right to operate in Sarawak.
According to a news report by The Edge, the date was set after the matter came up for its first case management before Federal Court deputy registrar Azaraorni Abd Rahman on Friday, with the federal and Sarawak governments named as respondents.
The application seeks to clarify PETRONAS’ legal standing to ensure its continued operations in Sarawak comply with the law and good governance practices, as well as to determine how the Petroleum Development Act 1974 (PDA) and the Distribution of Gas Ordinance 2016 (DGO) interact in law.
A counsel involved in the matter, who requested anonymity, said the parties have been directed to file their affidavits in reply to the application within the stipulated time frame.
As the referral involves constitutional issues, leave must first be obtained before the apex court can hear the merits of the application, to ensure it is not frivolous or vexatious.
Representatives from PETRONAS and both the federal and Sarawak governments attended the case management session via video conferencing on Friday. The parties have been instructed to keep the matter confidential, with court documents on PETRONAS placed under restriction.
In a statement on Jan 12, PETRONAS disclosed that it had filed the referral to the apex court for determination, where an origination motion was filed on Jan 10 with the federal government being a respondent in the application due to being custodian of the PDA.
The development comes amid a long-running dispute between PETRONAS and Sarawak-owned Petroleum Sarawak Bhd (PETROS) over the oversight of oil and gas assets in the state.
The issue has been the subject of debate since PETROS was appointed as Sarawak’s sole gas aggregator in February 2024, despite Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg having inked a joint declaration that recognises the PDA, which is federal legislation, and the DGO, which is a State law enforced in Sarawak.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said told Parliament earlier this week that federalism remains the guiding principle of Malaysia’s petroleum governance amid an ongoing dispute with PETROS over oil and gas oversight in Sarawak.
Azalina said that, based on input from PETRONAS, the principle helps ensure that powers are clearly and orderly divided between the federal and State governments in accordance with the Federal Constitution.
She added that the PDA remains the primary legislation governing petroleum management in Malaysia, vesting exclusive ownership, rights, powers, and privileges for exploration, production, and management of petroleum with PETRONAS.
In relation, Abang Johari had said let the court decide on the PETRONAS’ bid for regulatory clarity.
Meanwhile, in a related development, the Kuching High Court Judicial Commissioner Datuk Faridz Gohim Abdullah deferred his decision in a dispute between PETROS and PETRONAS over a RM7.95 million bank guarantee that was called by the latter in October 2024.
The decision, which was originally scheduled for Friday (Jan 30), has now been postponed to Feb 25.
Faridz informed the parties of the postponement, with the Sarawak and Sabah e-filing system recording: “Upon YA’s (the JC’s) instruction, the decision is rescheduled to Feb 25 at 9am, and today’s date is vacated.”
The case, which was heard last November, arose from PETROS’ attempt to recover RM7.95 million paid to PETRONAS after the latter called on a bank guarantee in October 2024.
PETROS filed an originating summons challenging PETRONAS’ claim on the bank guarantee, which formed part of the payments sought for gas supply in Sarawak, arguing that PETRONAS does not hold a licence to operate in the State under the DGO and its 2023 amendments.
In its submissions filed in early October and sighted by The Edge, PETRONAS maintained that it does not require a licence from Sarawak authorities to supply gas in the State. — DayakDaily
