Sarawak files petition in Malaysia’s top court challenging three federal petroleum laws

[KUALA LUMPUR] The government of the Malaysian state of Sarawak said on Monday (Feb 23) that it has filed a petition to the country’s highest court to challenge three federal laws governing petroleum. This is part of a broader effort to seek more control over its natural resources.

In 2024, Sarawak set up its own firm, Petros, to procure, distribute, supply and sell all natural gas produced in the state, putting it in conflict with Petronas, the energy firm owned by the national government.

Sarawak state authorities are seeking to determine the validity and applicability of the Petroleum Development Act of 1974, the Continental Shelf Act of 1966 and the Petroleum Mining Act of 1966, said Sharifah Hasidah Sayeed Aman Ghazali, deputy minister in the Sarawak Premier’s Department.

The move comes in response to an application filed by Petronas in January, seeking clarity about the legal and regulatory framework governing its operations in Sarawak. The hearing is scheduled for Mar 16.

She said in a Monday statement that the state government will object to Petronas’ application, noting that it does not fall within the Federal Court’s jurisdiction under the constitution.

Sharifah Hasidah noted: “The said federal Acts affect the boundaries of Sarawak, established before Malaysia Day, and Sarawak’s rights to the petroleum resources found in offshore land within its boundaries.”

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On Sep 16, 1963, a date now commemorated as Malaysia Day, the territory of Peninsular Malaysia unified with the islands of Sarawak, Sabah and Singapore. Singapore later separated in 1965.

She added: “Sarawak is justified in safeguarding the legitimate interests and rights of Sarawak and its people, which are enshrined in the Federal Constitution.”

Settling these constitutional issues will provide clarity on the regulatory framework for the oil and gas industry in Sarawak, and for investors in the upstream and downstream businesses of the industry, she said. REUTERS