Saturday, 7 March 2026

PETROS-PETRONAS’ legal dispute still on despite Joint Declaration agreement

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THE ongoing legal dispute between Petroleum Sarawak Bhd (PETROS) and Petroliam Nasional Bhd (ETRONAS) will remain a matter for the courts, even as a Joint Declaration signed between the Federal and Sarawak Governments sets a new framework for cooperation in the oil and gas sector.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg clarified that the court case is not automatically nullified by the declaration, saying the legal process must take its course.

“We leave it to the legal people to look into it, because there is a process.

“If we want to suspend it, there may be a suspension first, and later on, a withdrawal. But I leave that to the legal people. There is a process,” he said.

Abang Johari told the media this during a press conference at Sarawak Legislative Assembly (DUN) building today.

He was responding to questions on whether the Joint Declaration, signed recently with Prime Minister, Datuk Seri Anwar Ibrahim, would resolve the legal tensions between Sarawak’s oil and gas regulator and the national oil company.

He said the declaration reflects a foundational understanding between both governments, and does not require re-signing even if there is a change in federal leadership.

“This is the basic understanding between the federal government and our side. Yes, it is written and signed,” he asserted.

“No, we won’t sign it again. Don’t worry.”

The Premier also affirmed that the agreement signifies closure on disputes regarding regulatory jurisdiction, adding that PETRONAS has acknowledged Sarawak’s platform in managing its oil and gas industry.

“Yes, this will be the end (of the issue). They want to become the platform for the oil business sector,” he said.

The Joint Declaration recognises Sarawak’s Distribution of Gas Ordinance 2016 and aims to ensure regulatory clarity for industry players operating in the state.

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