Seeking clarity on oil operations


PETALING JAYA: PETRONAS has filed a motion at the Federal Court in Putrajaya to seek clarity on the applicable regulatory framework governing its operations in Sarawak.

The Federal and Sarawak governments are named as respondents.

The application seeks to determine its legal position to ensure that PETRONAS continues to operate in Sarawak, in full compliance with the applicable laws and sound governance practices, PETRONAS said.

“It (the court action) is not intended to challenge Sarawak’s development aspirations or hinder the role of Petroleum Sarawak Bhd (Petros) in the state’s energy sector.

“The decision follows constructive engagements since 2024 with Petros and both the Federal and state governments through a series of dialogues and negotiations,” the national oil company said in a statement.

PETRONAS noted that progress has been made on commercial arrangements and partnerships, including the signing of the Com­mercial Settlement Agreement (CSA) in 2020.

“(However) there have been differences which led to uncertainty in respect of the obligations applicable to PETRONAS,” it said.

“PETRONAS encourages all parties to respect and allow the judicial process to take its course and be resolved by the Federal Court, and refrain from public commentary,” it added.

In the meantime, PETRONAS said it remains committed to safe, reliable and efficient operations in Sarawak.

“Business activities will continue as usual.

“PETRONAS will continue to strengthen its relationships with Sarawak’s communities and industries, and work constructively towards arrangements that would both advance Sarawak’s development aspirations and ensure Malaysia’s prosperity.

The company also said it remains committed to transparent communication regarding its operations and partnership efforts.

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