KUALA LUMPUR: The Kuching High Court will deliver its judgment on Jan 30, 2026, in the legal dispute between Petronas and Sarawak’s state-owned Petros over a RM7.95 million bank guarantee,
The Edge Malaysia reported.
The case centres on Petros’ effort to recover the sum after Petronas called on the guarantee in October last year, prompting legal arguments over licensing rights under Sarawak’s Distribution of Gas Ordinance.
During recent hearings, Sarawak state counsel JC Fong argued that Petronas acted unconscionably by refusing to comply with state gas laws, blocking licensed producers from selling to Petros and continuing supply under a frustrated agreement.
The matter proceeds despite earlier federal–state negotiations aimed at resolving overlapping powers under the Petroleum Development Act and the state’s gas ordinance, with Putrajaya confirming that discussions remain ongoing.
Petros maintains that Petronas has no licence to operate under Sarawak law, while Petronas insists its rights under federal legislation supersede state requirements in Malaysia’s largest gas-producing state.
