PETALING JAYA: Petronas has filed a motion at the Federal Court to seek clarity on the applicable regulatory framework governing its operations in Sarawak, to ensure its operations in the state comply with applicable laws and governance practices.
In a statement, the national oil company named the federal and Sarawak governments as respondents.
Petronas said the suit was not meant to challenge Sarawak’s development aspirations or hinder Petroleum Sarawak Berhad (Petros) — the state’s sole gas aggregator.
“Instead, it seeks a definitive determination by the Federal Court on the legal position applicable to the petroleum sector in the state.”
Petronas said the decision to file the motion followed a series of dialogues and negotiations with Petros, as well as both federal and state authorities, since 2024.
It said while progress has been achieved on many commercial arrangements and partnerships, including the landmark Commercial Settlement Agreement (CSA) signed in 2020, differences remain.
This had led to uncertainty over Petronas’s obligations in Sarawak, the statement read.
Meanwhile, Petronas reaffirmed its commitment to safe, reliable and efficient operations in Sarawak.
Business activities, it said, will continue as usual, adding that they will work constructively towards arrangements that advance Sarawak’s development aspirations while ensuring Malaysia’s overall prosperity.
The CSA , which came into effect on Dec 7, 2020, stipulates a greater share of revenues from oil and gas found and produced in Sarawak.
It also provides for a more active involvement by the state in the oil and gas industry through the management of onshore oil and gas resources via Petros.
