Petronas and Sarawak seek separate hearings for oil and gas legal challenges
Petroliam Nasional Bhd and the Sarawak government are seeking to have their petitions challenging oil and gas laws heard separately by the Federal Court. This was indicated to Federal Court judge Rhodzariah Bujang…
Source: freemalaysiatoday.com · Sarawak Tribune · Free Malaysia Today · September 24, 2026 at 2:02 PM · AI-assisted report
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KUALA LUMPUR, 24 SEPTEMBER 2026 —
Petroliam Nasional Bhd and the Sarawak government are seeking to have their petitions challenging oil and gas laws heard separately by the Federal Court. This was indicated to Federal Court judge Rhodzariah Bujang during a summons for directions proceeding, according to Free Malaysia Today.
Petronas lawyer Cyrus Das informed the court that the Sarawak government opposed consolidating the two petitions. Das said the state government also proposed that its case be heard first, followed by the Petronas petition.
Petronas wanted its petition heard first in accordance with the filing sequence, according to Das. He said his client filed its petition on Jan 10 and obtained leave under Article 4(4) of the Federal Constitution on March 16.
The Sarawak government filed its petition on Feb 23, according to Das. He said the Petronas challenge concerned state laws while the Sarawak government petition challenged federal laws.
The Sarawak government also wants the Federal Court to first decide a preliminary issue concerning a colonial-era order, according to the proceedings. This is the Sarawak (Alteration of Boundaries) Order in Council 1954, which determines the borders of Sarawak and Sabah.
Senior state counsel Adzrul Adzlan told reporters that the state contends the boundary order issue does not fall under the jurisdiction of the Federal Court. Judge Rhodzariah fixed Oct 1 to decide the hearing sequence and matters relating to the preliminary objection, according to Free Malaysia Today.
The Federal Court granted Petronas leave on March 16 to challenge the competence of the Sarawak state legislature to enact certain laws. Petronas claimed the state legislature lacked competence to enact laws with respect to matters under List 1 of the Federal List in the Ninth Schedule of the Federal Constitution.
The Sarawak government filed a petition against the government of Malaysia and Petronas asking the court to determine the constitutional validity of several federal acts. The state seeks a declaration that the Petroleum Development Act 1974, the Continental Shelf Act 1966 and the Petroleum Mining Act 1966 as applied to Sarawak were unconstitutional and void from the beginning.
Related: Petronas · Federal Court
Malaysia Impact
8/10Legal proceedings could reshape Malaysia’s oil-and-gas revenue-sharing framework, affecting royalties, production licenses, and fiscal relations between the federal government and Sarawak, with potential downstream effects on energy sector investments and commodity-linked economic activities.
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