Malaysia

Apex court grants PETRONAS leave to challenge Sarawak state laws

Chief Justice of Malaya, Datuk Hashim Hamzah, allowed PETRONAS' application after being satisfied that the national oil and gas company had successfully passed the allocation threshold to enable the Federal Court to grant permission.

Updated 5 months ago · Published on 16 Mar 2026 3:31PM

Apex court grants PETRONAS leave to challenge Sarawak state laws
"It (the permission application) is not frivolous or an abuse of the court process," said Hashim - March 16, 2026

THE Federal Court has allowed Petroliam Nasional Bhd (PETRONAS) to refer a question of law regarding clarification on the regulatory framework applicable to the company's petroleum operations in Sarawak.

This was after Chief Justice of Malaya, Datuk Seri Hashim Hamzah, was satisfied that the national oil and gas company had successfully passed the allocation threshold to enable the Federal Court to grant permission.

The decision was made after hearing arguments from Petronas' lawyers, Datuk Cyrus Das and Khoo Guan Huat, Sarawak Attorney-General, Datuk Saferi Ali and state Legal Adviser, Datuk Seri Fong Joo Chong.

“After hearing arguments from both sides, the court finds that there are issues that can be heard and decided. It (the application for permission) is not frivolous or an abuse of court process,” he said.

Earlier, Das said the Sarawak State Legislative Assembly (DUN) had passed amendments to several ordinances, including the Gas Distribution Ordinance (DGO) and the Oil Mining Ordinance, which contravened the provisions under Sections 1(a), 8(c), 8(j) and 11(c) of the Ninth Schedule of the Federal Constitution.

The provisions touched on agreements, trade, development of mineral resources, as well as the production and distribution of power and energy.

According to Das, only the Dewan Rakyat can pass laws relating to these matters and not the DUN.

He added that the amendments to the DGO approved in 2023 also indirectly made Petroleum Sarawak Bhd (PETROS) the sole gas aggregator in Sarawak to ‘replace’ PETRONAS.

Fong opposed PETRONAS’ application to commence the constitutional challenge on the grounds that it should have been filed before the High Court.

He insisted that the Sarawak DUN had acted within its rights and jurisdiction when passing the relevant ordinances.

Meanwhile, Senior Federal Counsel Ahmad Hanir Hambaly, representing the Federal Government, informed that Putrajaya had no objection to PETRONAS continuing with the constitutional challenge.

He explained that the matter should be continued for a full hearing.

Hashim then ordered PETRONAS to file its petition detailing the ordinance and provisions being challenged within 21 days. – March 16, 2026

Related News

Malaysia / 3w

Rosmah granted conditional stay on RM67.5m jewellery payment

Malaysia / 1mth

Syed Saddiq walks free: Federal Court upholds acquittal

Malaysia / 2mth

Acquisition of two gas blocks to Petronas an extraordinary development - PM

Malaysia / 2mth

MACC application to stop Na'imah managing assets in Jersey to be heard on August 13

Malaysia / 3mth

Pregnant wife distraught over husband's sudden death from incident at sea

Malaysia / 4mth

Court of Appeal: Emergency proclamations beyond judicial review

Spotlight

Malaysia

Anwar: Children’s smiles, dreams are Malaysia’s future (video)

Heritage

Penang first state to recognise Hungry Ghost Festival, cemeteries as heritage

Malaysia

Child malnutrition needs urgent action, says Charles Santiago

By Alfian Z.M. Tahir

Malaysia

Zahid: Umno, BN favour earlier GE16

World

Trump floats renaming Strait Of Hormuz ‘Trump Strait’ amid Iran conflict

Malaysia

Weak earthquake measuring 3.4 magnitude detected in Keningau

Malaysia

Stepfather held over alleged rape, sexual assault of 13-year-old in Besut

Malaysia

Toying with danger: Police tracking owner of MPV

You may be interested

Malaysia

Emergency declared in Serian as haze reaches hazardous levels (UPDATED)

Malaysia

Ministries must spend according to set budgets - KSN

Malaysia

Police probe viral teen fight over social media photo in Kuala Pilah

Malaysia

Bersatu, Muda leaders hold talks amid uncertainty over PN

Malaysia

Serian air pollution hits hazardous level with API reading of 495

Malaysia

IT officer loses RM20,000 in TikTok SPayLater scam

Malaysia

PAS-BN talks gain momentum ahead of GE16, Abdul Hadi confirms

Malaysia

12-year-old boy dies after motorcycle crashes into lorry in Gurun