Malaysia

Federal Govt urges courts to decide PETRONAS–PETROS power dispute

The government has reiterated that the dispute over overlapping authority between PETRONAS and Sarawak’s state-owned oil firm PETROS should be resolved through the courts

Updated 8 months ago · Published on 28 Jan 2026 6:52PM

Federal Govt urges courts to decide PETRONAS–PETROS power dispute
Fadillah says the matter must now be addressed through proper legal channels with proceedings now under way (Photo from Awani) - January 28, 2026

THE federal government has stressed that the contentious issue of overlapping powers between Petroliam Nasional Bhd (PETRONAS) and Petroleum Sarawak Bhd (PETROS) should be left to the courts to decide, following the initiation of legal proceedings involving both entities.

Deputy Prime Minister II Datuk Seri Fadillah Yusof said he was aware of the wide range of public reactions surrounding the issue, including debates on social media, coverage in the press and responses from Sabah and Sarawak.

However, he said the matter must now be addressed through proper legal channels.

"Maybe there are many views especially on social media, newspapers and responses from Sabah and Sarawak. But with regard to the statement, since the PETRONAS and PETROS case has already been brought to court, let the court decide the matter.

"We will see what the decision will be, based on what has been brought before the court," he told reporters after launching the MA63 Dashboard at the Parliament building here today.

Also present was Minister in the Prime Minister’s Department for Sabah and Sarawak Affairs Datuk Mustapha Sakmud.

Fadillah was responding to recent remarks by Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, who said the Malaysia Agreement 1963 does not contain provisions on the ownership, management or regulation of oil and gas resources, nor does it define the roles of petroleum entities such as PETRONAS or PETROS.

In a written parliamentary reply, Azalina said MA63 serves as a foundational document establishing the formation of Malaysia, including certain rights and autonomy for Sabah and Sarawak.

"However, MA63 does not include provisions related to the ownership, management or regulation of oil and gas resources, and does not govern the role of petroleum entities such as PETRONAS or PETROS," she said.

The issue was raised by Datuk Ali Anak Biju (PN–Saratok), who sought clarification on the federal government’s current position on Sarawak’s claims under the Sarawak Oil Mining Ordinance 1958, as well as the extent to which MA63 negotiations affect PETRONAS’ authority and control. - January 28, 2026

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