By Lian Cheng
KUCHING, May 22: Sarawak has yet to withdraw the case where Sarawak Petroleum Berhad (PETROS) has taken Petrolium Nasional Berhad (PETRONAS) to court over the demand for RM8 million by the latter on a bank guarantee given by PETROS.
This is despite the recent development where both Sarawak and the Federal governments have come to an agreement that PETROS is the sole aggregator in Sarawak.
The decision was announced in a joint declaration yesterday (May 21) by Prime Minister Datuk Seri Anwar Ibrahim and Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg, marking a historic milestone in Federal-Sarawak cooperation on oil and gas matters.
The declaration, made in the interests of the Federation of Malaysia, Sarawak, and the national oil and gas industry, affirmed that all relevant Federal and Sarawak laws relating to gas distribution in Sarawak shall coexist and be respected by all industry players, including PETRONAS and PETROS.
Sarawak Legal Councel Dato Sri JC Fong when contacted said the procedure and process of withdrawal as laid down by Rules of Court needs to be followed.
“Also PETRONAS must agree to withdrawal of the court cases. PETROS cannot withdraw unilaterally,” Fong told DayakDaily.
The demand was for payment of natural gas supplied by PETRONAS to PETROS under a Gas Supply Agreement was dated Dec 30, 2019.
PETROS has pleaded that the said Agreement has been frustrated by the amendment to section 7 of the Distribution of Gas Ordinance, 2016, which states that no person other than the gas aggregator may supply or distribute gas in Sarawak without a licence issued by the Director of Gas Distribution.
PETROS also contends that the performance by PETRONAS without a licence issued under the Ordinance had rendered it illegal and unenforceable.
To PETROS, it is unconscionable for PETRONAS to demand payment for gas supplied unlawfully, in contravention of the Ordinance.
PETRONAS denied it is subject to the said Ordinance, as it should only be bound by the Petroleum Development Act 1974.
Meanwhile, Fong said the same principle also applies to the case where Shell’s Malaysian subsidiary secured an interim injunction from the Kuala Lumpur High Court in January, allowing it to continue operations while the broader PETRONAS-PETROS dispute is resolved. — DayakDaily
