Sarawak welcomes federal court decision over Petronas legal challenge

KUCHING: Sarawak has welcomed the Federal Court decision today denying Petronas leave to commence a legal challenge against the state government over the national oil company's right to regulate the state's oil and gas upstream activities.

“Syukur Alhamdulillah (Praise be to God), Sarawakians have just won in court today. Thank you so much to our legal team and let us all pray for the best in moving forward,” Chief Minister Datuk Patinggi Abang Johari Tun Openg said in his official Facebook post.

In Putrajaya earlier today, Chief Judge of Malaya Tan Sri Ahmad Maarop dismissed the Petronas application for leave to commence proceedings against the Sarawak government and ordered the national oil company to pay RM50,000 in costs to the state government.

Petronas had filed an application on June 6 for leave to commence proceedings under Article 4 (4) of the Federal Constitution to seek a declaration that the Petroleum Development Act 1974 (PDA) applied in respect of the regulation of upstream activities in Sarawak.

It sought the court's declaration that the PDA was duly enacted by Parliament, and it states that Petronas is the exclusive regulatory authority for the upstream industry throughout Malaysia, including in Sarawak. The company had also sought a declaration that the OMO was impliedly repealed by the PDA.

Petronas was represented by lawyer Datuk Malik Imtiaz Sarwar while Sarawak state legal counsel Datuk Seri J. C. Fong appeared for the state government. — Bernama

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