Work as a team to develop Malaysia, PM tells Petronas, Petros

Malaysia's Prime Minister Anwar Ibrahim has called upon national oil and gas companies Petronas and Petroleum Sarawak Bhd (Petros) to collaborate as a united team for the country's development, according to Bernama. The two firms are currently embroiled in a dispute over their regulatory obligations, with Petronas seeking clarification from the Federal Court on which laws apply to its Sarawak operations.

Anwar, who serves as both Prime Minister and Finance Minister, emphasized that both companies must acknowledge and respect both state and federal rights and laws to reach a consensus. He stated that a commercial agreement between Petronas and Petros should be expedited and finalized, noting that no challenge within the Malaysian federation is beyond resolution.

Sarawak has sought greater control over its oil and gas resources, appointing Petros as the gas aggregator for its domestic market. In May 2025, Putrajaya and Sarawak signed a joint declaration recognizing Petros as the gas aggregator while maintaining Petronas's upstream management role under the Petroleum Development Act 1974 and the preservation of Malaysia's liquefied natural gas value chain.

In January, Petronas turned to the Federal Court to clarify the governing laws for its operations in Sarawak, expressing ongoing differences in regulatory obligations. Sarawak subsequently filed a petition challenging the validity of several federal petroleum laws in February, and the Federal Court granted Petronas leave to proceed with its constitutional challenge in March.

Anwar announced in June that several critical issues have been resolved, and a final agreement between Petronas and Petros is expected soon.