KUCHING: Parti Pesaka Bumiputera Bersatu (PBB) Youth has expressed concern over PETRONAS’ move to file a motion at the Federal Court seeking clarification on the laws governing its operations in Sarawak, saying the issue would be better addressed through continued engagement and dialogue.
Its chief, Datuk Martin Ben, said the national oil and gas company’s decision could be interpreted as an attempt to undermine Sarawak’s regulatory framework and circumvent state laws governing the oil and gas industry, despite ongoing engagements between the Sarawak Government and the Federal Government to jointly develop the sector.
“It is indeed alarming to see PETRONAS resorting to the courts despite continuous discussions between the Sarawak Government and the Federal Government with the objective of developing Sarawak’s oil and gas industry,” he said in a media statement today.
While acknowledging that the courts are the appropriate avenue to resolve legal disputes, Martin stressed that differences in views on Sarawak’s regulatory framework would be better addressed through continued dialogue.
He said such discussions should involve not only PETRONAS and Petroleum Sarawak Bhd (PETROS), but also Prime Minister Datuk Seri Anwar Ibrahim and Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
Martin reiterated that all parties doing business in Sarawak must comply with Sarawak laws, a principle that also applies to PETRONAS.
He also pointed out that the Federal Government has accepted and recognised PETROS as the gas aggregator after lengthy deliberations, a recognition that was publicly acknowledged by the Prime Minister.
In addition, he noted that both governments signed a joint declaration in May 2025, reaching an understanding that Sarawak’s laws are recognised.
“In light of this, we question whether PETRONAS’ decision to bring the matter to court was made with the consent, approval and endorsement of the Federal Government,” he said.
Martin cautioned that a national oil and gas company should not make unilateral decisions that overlook the sensitivities and intricacies of State-Federal relations, as such actions could be perceived as federal overreach into Sarawak’s rights.
Expressing confidence in Sarawak’s legal position, he said the state’s regulatory framework for the oil and gas industry is grounded in law and affirmed by history.
“Sarawak rights are not to be questioned or negotiated upon. We will continue to stand firm with the Premier in protecting and defending Sarawak rights, and we are confident that Sarawak will weather this challenge and emerge stronger,” he added.
On Tuesday, Abang Johari said the question of who holds regulatory authority over petroleum activities in Sarawak should ultimately be decided by the courts.
This follows PETRONAS’ filing of a motion at the Federal Court in Putrajaya seeking clarification on the regulatory framework governing its operations in the state, with both the Federal and Sarawak Governments listed as respondents.
The application requests the court to establish the legal position applicable to PETRONAS’ activities in Sarawak, ensuring the company continues to operate in full compliance with relevant laws and sound governance practices.
PETRONAS emphasised that the court action is not intended to challenge Sarawak’s development goals or to undermine the role of Petroleum Sarawak Bhd (PETROS) in the state’s energy sector.
