By DayakDaily Team
KUCHING, April 16: Sarawak Petroleum Berhad (Petros) has taken Petroliam Nasional Berhad (PETRONAS) to court over the demand for RM7,955,208.28 by PETRONAS on a bank guarantee given by Petros but the case has been postponed by Kuching High Court Judicial Commissioner Faridz Gohin Abdullah.
The adjournment was granted after the Sarawak government, through the Sarawak Attorney General, and the Federal government, through the Federal Attorney General, asked the Court for its permission to appear as amicus curaie (friend of the Court) to assist it due to the constitutional and other legal issues raised in the case.
The Judicial Commissioner allowed both Federal and Sarawak governments to appear as amicus curiae.
The Court granted adjournment after the Senior Federal Counsel Ahmad Hanir Hambaly said that he required 14 days to file in his written submission on behalf of the federal government.
PETRONAS, through its counsel Alex Ngu sought an adjournment as PETRONAS had filed an application to stay the hearing scheduled for today for Petros’ case for a declaration that PETRONAS’ demand on the bank guarantee was unconscionable and unlawfully, null and void.
PETRONAS wants to stay the case until after the outcome of the case commenced in the Kuala Lumpur High Court by Shell SDMS Sdn Bhd against PETRONAS and Petros to determine to whom SDMS should make payment for the gas supplied to SDMS.
Both Petros, through counsel Sim Hui Chuang, and the Sarawak government, represented by Sarawak Legal Advisor Dato Sri JC Fong objected to any postponement and the stay application by PETRONAS.
Fong argued that the issues in this case are of public interests and concern, and so the case should be dealt with expeditiously in the interests of Sarawak, Petros and PETRONAS.
He pointed out that under Article 121(1) of the Federal Constitution, both the High Court in Sabah and Sarawak, and the High Court in Malaya are Courts of co-ordinate jurisdiction and status. For PETRONAS to ask the High Court in Kuching to stay the hearing of a case to await a decision of the High Court in Malaya is showing disrespect to the High Court in Sabah and Sarawak, and is indulging in “forum shopping”.
Fong urged the Court to proceed with the hearing of the case as scheduled today since all parties and stakeholders, the government of Malaysia and the Sarawak government, are represented before the Court.
The Judicial Commissioner said he is obliged to hear PETRONAS’ application to stay the hearing of this case first.
He fixed April 23, 2025, to hear PETRONAS’ stay application, and ordered both governments to file their submissions in the main case by April 30, 2025.
The date for the hearing of this case will be fixed after the disposal of PETRONAS’ stay application on April 23.
In this case, Petros is seeking a declaration that the demand made by PETRONAS on October 14, 2024, in relation to its bank guarantee, is unconscionable, unlawful, and therefore null and void.
The demand was for payment of natural gas supplied by PETRONAS to Petros under a Gas Supply Agreement 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.
As such, 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. — DayakDaily
