Tue, 24 Feb 2026
Headlines:
Advertisement
Sarawak files Federal Court petition over applicability of Federal petroleum laws
Published on: Monday, February 23, 2026
Published on: Mon, Feb 23, 2026
Text Size:
Text:
Sarawak files Federal Court petition over applicability of Federal petroleum laws
KUCHING: The Sarawak Government has filed a petition in the Federal Court to determine the constitutional validity and continued applicability of the Petroleum Development Act 1974, the Continental Shelf Act 1966 and the Petroleum Mining Act 1966 to Sarawak.

Deputy Minister in the Premier’s Department (Law, MA63 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali said in a statement on Monday that the petition was filed on Monday.

Advertisement
She said the Federal Acts adversely affect Sarawak’s rights to natural resources, including oil and gas found in the seabed of the continental shelf within Sarawak’s boundaries as defined by the Sarawak (Alteration of Boundaries) Order in Council 1954 and the Sarawak (Definition of Boundaries) Order in Council 1958.

Under the Malaysia Agreement 1963 (MA63) and its annexed constitutional instruments, she said sovereign rights to petroleum resources in the seabed within Sarawak’s boundaries were vested in Sarawak on Malaysia Day.

SPONSORED CONTENT
Finance Minister Datuk Seri Masidi Manjun said the two projects together would add 28MWac of new power generation capacity, helping to stabilise electricity supply in Sabah.
She said Item 2(c) of the Ninth Schedule of the Federal Constitution vests legislative authority in the State Legislative Assembly to regulate the exercise of such petroleum rights through the issuance of mining leases, certificates and prospecting licences.

Sharifah Hasidah said the Continental Shelf Act 1966 and the Petroleum Mining Act 1966 were originally applicable to the States of Malaya but were extended to Sarawak by ordinance after the Proclamation of Emergency 1969, which was annulled in December 2011.

Advertisement
She said by June 2012, the two laws should no longer apply to Sarawak by reason of Article 150(7) of the Federal Constitution.

She also said Petronas had on Jan 10, 2026, filed an application to seek leave to challenge the validity of several Sarawak state laws regulating its petroleum operations, which is scheduled for hearing on March 16, 2026.

Advertisement
She said the State Government would object to the application and has also sought a determination from the Federal Court under Articles 4(3) and 128(1) of the Federal Constitution on the validity of the federal Acts in so far as their application to Sarawak is concerned.

Sharifah Hasidah said the determination would provide clarity on the regulatory framework for the oil and gas industry in Sarawak, particularly for investors in the upstream and downstream sectors, while the State remains committed to constructive discussions with the Federal Government.
* Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates!

* Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Advertisement
Share this story
Advertisement
Advertisement
Follow Us  
Follow us              
Daily Express TV  
© Copyright 2026 Sabah Publishing House Sdn. Bhd. (Co. No. 35782-P)
close
Try 1 month for RM 18.00
Already a subscriber? Login here
Try 1 month for RM 18.00
open
Try 1 month for RM 18.00
Already a subscriber? Login here