KUCHING: Petroleum Sarawak Berhad (PETROS) will review the written judgment of the High Court and consider the appropriate legal steps following yesterday’s ruling on the bank of guarantee dispute under the Sarawak Gas Sale Agreement (GSA).
In its statement, the company said it would carefully study the grounds of judgment before deciding on its next course of action, in accordance with the law.
“The decision by the Kuching High Court was made solely on technical grounds relating to the bank of guarantee,” it said.
It clarified that the court did not make any determination on the underlying legality of the Sarawak GSA, nor did it rule on the merits of the constitutional arguments concerning the Distribution of Gas Ordinance 2016 (DGO 2016).
According to PETROS, the ruling does not impair its ability to pursue further legal action to seek clarity on its rights and position under the DGO 2016.
The company reiterated that the broader legal and constitutional questions surrounding the matter remain unresolved.
Earlier, the High Court here yesterday (Feb 25) had ruled that Petroliam Nasional Berhad (Petronas)’ demand for a RM7.95 million bank guarantee from PETROS was valid.
Judge Datuk Faridz Gohim Abdullah held that Petros had failed to prove that the call on the bank guarantee was either unconscionable or unlawful.
As a result, Petros was ordered by the court to pay legal costs of RM50,000 to Petronas.
State legal counsel Datuk Seri JC Fong said the High Court had declined to decide on the constitutional issues and instead made a commercial determination.
“The constitutional issue will now be decided by the Federal Court since the High Court declined to decide on it and made a commercial decision,” he said.
