Sarawak defends gas rights in court battle with Petronas

Published on: Thursday, June 12, 2025
Published on: Thu, Jun 12, 2025 Text Size: KUCHING: During a High Court hearing on Wednesday, lawyers for Petroleum Sarawak Berhad (Petros) and the Sarawak government argued that Petronas violated the Sarawak Gas Sales Agreement (SGSA) and state laws by supplying gas without a valid licence. Petros seeks to nullify a RM7.95 million bank guarantee claim by Petronas, calling it 'unconscionable and illegal.'
Advertisement Amicus curiae Datuk Seri J.C. Fong emphasized that under the SGSA and the Distribution of Gas Ordinance 2016 (DGO), Petronas must recognize Petros as Sarawak's sole gas aggregator. He accused Petronas of bypassing legal obligations, obstructing licensed suppliers, and undermining Petros' statutory role. Fong dismissed Petronas' reliance on the Petroleum Development Act 1974, stating the SGSA is a standalone commercial agreement and does not supersede Sarawak's constitutional rights over gas regulation. He also refuted claims that oil royalty payments imply Sarawak relinquished its regulatory authority. * 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.
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