Work as a team to develop Malaysia, PM tells Petronas, Petros
Anwar Ibrahim says the commercial agreement between Petronas and Petros must be expedited and finalised.
In January, Petronas approached the Federal Court seeking clarification on the laws that regulate its operations in Sarawak, expressing that regulatory obligations remained a point of contention. Prime Minister Anwar Ibrahim, who is also the finance minister, called upon Petronas and Petroleum Sarawak Bhd (Petros) to collaborate as a unified team with the primary objective of advancing the nation.
Anwar emphasized that for both oil and gas companies to reach an agreement amidst their ongoing disagreement, they must acknowledge and respect both state and federal rights and laws. He stated that there is no reason why this dispute cannot be resolved. Anwar expressed gratitude for the spirit of the Malaysian federation, underscoring that various projects and programs have been successfully implemented for the benefit of the people.
Sarawak has sought increased control over oil and gas resources by appointing Petros as the gas aggregator for its domestic market. However, Petronas maintains that its national role encompasses upstream management under the Petroleum Development Act 1974 and safeguards Malaysia's liquefied natural gas value chain, including existing export agreements.
In May 2025, Putrajaya and Sarawak signed a joint declaration designating Petros as Sarawak's gas aggregator while reaffirming Petronas's ongoing role under the Petroleum Development Act. Despite this, in January, Petronas sought legal clarification from the Federal Court regarding the governing laws for its Sarawak operations. In the following month, Sarawak filed a similar petition in the Supreme Court, contesting the validity and ongoing application of several federal petroleum laws, including the Petroleum Development Act, Continental Shelf Act 1966, and Petroleum Mining Act 1966.
In March, the Federal Court granted Petronas the right to pursue its constitutional challenge. Anwar revealed in June that several crucial issues had been resolved, with a final agreement anticipated in the near future.
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- Work as a team to develop Malaysia, PM tells Petronas, Petros freemalaysiatoday.com
