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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