Sarawak ready for full bench challenge against PETRONAS, federal petroleum laws

Saferi (left) and Fong (right) met after judgement review at the Palace of Justice in Kuala Lumpur on March 16, 2026. Photo credit: TVS-Azmeerul Ahmad
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By DayakDaily Team

KUCHING, March 17: Sarawak is set to re-argue its landmark Federal Court case challenging the validity and continued enforcement of federal petroleum laws in the State, following the court’s ruling that the matter is legally arguable.

The State will await the court’s decision before coordinating a petition to assert Sarawak’s constitutional rights over its petroleum resources.

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Sarawak Attorney-General, Dato Sri Saferi Ali noted that on Monday (March 16) that the Federal Court has allowed Petroliam Nasional Berhad (PETRONAS) to file a legal reference on the clarity of the petroleum operational framework in Sarawak.

“The court has granted PETRONAS 21 days to file its petition, expected by mid-April. Sarawak, which has its own petition pending, will wait to see whether both petitions will be heard together or consolidated. Our next steps will be determined accordingly,” he told TVS.

State legal counsel Dato Sri Fong Joo Chung confirmed that his office is ready to re-argue the case before a full bench of judges, after the court ruled that the matter is legally arguable.

“The court has determined that the case is arguable, though not strong, and must be brought before the full bench of the Federal Court. Sarawak will therefore re-argue the matter before the larger panel,” he added.

PETRONAS filed its legal reference on Jan 10, seeking clarity on the petroleum operational framework under Article 4(4) of the Federal Constitution.

At the same time, Sarawak filed a petition challenging the validity and continued enforcement of three federal laws: the Petroleum Development Act 1974, the Continental Shelf Act 1966, and the Petroleum Mining Act 1966.

Sarawak asserts that, under the Malaysia Agreement 1963 (MA63) and related constitutional instruments, sovereignty over petroleum resources within the State’s boundaries was transferred to Sarawak by the British government on Malaysia Day and not to the federal government.

Accordingly, the State maintains that these federal laws have not applied since June 2012 under Article 150(7) of the Federal Constitution. — DayakDaily

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