Wednesday, 25 February 2026

High Court's decision in Petros vs Petronas has nothing to do with state government's petition seeking clarity on three federal laws, says Hasidah

KUCHING, Feb 26 2026:  The High Court's decision involving Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros) is deemed to be a commercial case between the two entities and does not affect the petition filed by the state government at the Federal Court to seek legal clarity on three federal laws that Sarawak is questioning their constitutional validity and applicability.

Sharifah Hasidah says the cases that involved Petros and Petronas are commercial in nature that they brought to court and the court’s decision is a decision that we as the people must respect. 

Deputy Minister in the Sarawak Premier's Department (Law, MA63 and State-Federal Relations) Sharifah Hasidah Sayeed Aman Ghazali said the public needs to understand that the court’s decision has nothing to do with legal action taken by the Sarawak government as both involve different matters in terms of scope and purpose.

According to her, the case between Petros and Petronas is a commercial dispute brought by the two companies themselves to court, while Sarawak's petition aims to seek interpretation and legal certainty regarding jurisdiction between the state and the Federation.

“The cases that involved Petros and Petronas are commercial in nature that they brought to court and the court’s decision is a decision that we as the people must respect.

“However, it has no relevance and does not affect the petition we filed at the Federal Court,” she was quoted by Sarawak Public Communications Unit (Ukas).

“Our petition is to seek clarity on the law that we have between the state and the federation. So these two matters are different, and it does not mean that the court’s decision in the commercial case will affect our petition,” she said when met by the media during the Taman Sukma Hall Project Handover Ceremony here this evening.

She added that the Sarawak government remains committed to continuing the ongoing legal process to ensure that the state’s rights can be clarified through the correct legal channels, thus avoiding confusion among the community on the issue.

“This is proven through the efforts and commitment of the state government in fighting for the rights of the people of Sarawak through the Malaysia Agreement 1963 (MA63),” she said.

 

Petros says to review High Court's written judgment before considering taking appropriate legal steps

KUCHING, Feb 25 2026: Petroleum Sarawak Berhad (Petros) said it will review the written judgment of the High Court carefully and consider the appropriate legal steps in accordance with the law. 

The state oil company said the High Court’s decision does not impair its ability to pursue further legal actions to seek clarity on its rights and position under the Distribution Gas Ordinance 2016 (DGO2016).  

“The case decided today on the unconscionable call of the bank guarantee under the Sarawak Gas Sale Agreement (GSA) was based solely on the technical grounds relating to the bank guarantee,” Petros said in a statement when referring to the High Court’s decision

.It said that the court did not make any decision on the underlying legality of the Sarawak GSA, nor did it rule on the merits of the constitutional arguments concerning the DGO 2016.

Early today, the court dismissed Petros’ application to declare Petroliam Nasional Berhad's (Petronas) bank guarantee claim invalid and unconstitutional.

The decision was made by Judge Faridz Gohim Abdullah who ruled that Petronas' claim for the bank guarantee amounting to RM7.95 million was valid.

He explained that Petros failed to prove that the claim on the bank guarantee was unreasonable or unlawful.

The judge said Petronas' claim on the bank guarantee amounting to RM7.95 million is in line with the terms of the bank guarantee which is 'on-demand' and unconditional.

The dispute arose after Petronas made a claim against the bank guarantee following Petros' failure to settle payment for gas supplies in August 2024.

Petros argued that Petronas did not have a valid licence under the DGO 2016 to supply gas in Sarawak, while Petronas insisted that it operated under the Petroleum Development Act 1974 (PDA 1974), a Federal law which it said prevailed over state laws in the event of a conflict.

The court ruled that the issue of overlap between Federal and state law, including the question of legal validity, falls within the exclusive original jurisdiction of the Federal Court and cannot be decided in these proceedings.

Petros was represented by  Cecil Abraham, Sim Hui Chuang, Lim Lip Tze and Rosalie Tien, while Petronas was represented by Cyrus Das, Khoo Guan Huat and Alex Ngu Sze Sha.Sarawak State Legal Adviseri Fong Joo Chung acted as an observer on behalf of the Sarawak government.

 

 

First ever AI CCTV installed by state JKR at P-Turn area in Selangau

KUCHING, Feb 25 2026: The state Public Works Department (JKR) has chosen Selangau to install Sarawak's first Artificial Intelligence (AI) CCTV at a P-Turn area on the  Pan Borneo Highway as a strategic step to improve road safety, especially in the P-Turn area which is identified as having high traffic flow and risk of accidents. 

Caption: First AI CCTV installed at P-Turn in Selangau 

JKR director Dr Cassidy anak Morris said the installation of the first AI CCTV in Pan Borneo Highway is a proactive approach in strengthening smart traffic monitoring, improving the level of safety of road users specifically at the P-Turn location

He said it is also to support the monitoring of public environmental cleanliness in line with the aspirations of the development of Sarawak's smart city. 

He added the implementation of the AI CCTV system is expected to enable more effective traffic monitoring, thus supporting accident prevention efforts and improving traffic management, especially in the P-Turn Selangau area, thus benefiting road users around Sibu Division. 

He said JKR will continue to be committed to strengthening road safety infrastructure through innovative and high-tech approaches for the well-being of the people.

Give support to Sarawak government in questioning validity of three federal laws, Jeffrey Kitingan asks Sabah government

 

KOTA KINABALU, Feb 25 2026:Parti Solidariti Tanah Airku (STAR) president Dr Jeffrey Kitingan has asked the Sabah government and Sabahans to stand firmly behind and support the Sarawak government over a petition filed in the Federal Court to determine the constitutional validity and applicability of three federal laws on Sarawak.

Dr Jeffrey Kitingan: Sabah's legal and constitutional position in relation to PDA74, CSA66 and PMA66 is the same as that of Sarawak.
 

He said this is because Sabah’s legal position in respect of the Petroleum Development Act 1974 (PDA74), Continental Shelf Act 1966 (CSA66) and Petroleum Mining Act 1966 (PMA66) is the same of that of Sarawak.

“For the Sabah government, Sabah’s borders up to the continental shelf must be defended, and Sabah leaders must stop bowing to their political masters across the South China Sea,” he said in a statement yesterday.

He stressed that Sabah's legal and constitutional position in relation to PDA74, CSA66 and PMA66 is the same as that of Sarawak.

Sabah has an Order in Council of Sabah (Alteration of Boundaries) 1954 similar to Sarawak's which extended Sabah's borders to the continental shelf.

This extension of the border was adopted in Article 3 of the Federal Constitution as Sabah's borders shortly before Malaysia Day on 16 September 1963,” he stressed.

Jeffrey said that there is no dispute, either legally or morally, that Sabah's oil and gas resources should be duly returned to the people of Sabah.

He explained that the oil resources that Sabah has been denied since 1976 have caused great injustice, saying that it has made Sabah and its people the poorest in the country.

The lag in the development of basic services such as water, electricity and roads is often mocked on social media as being like on the moon,” he said.

Jeffrey said it is time for the political leaders to exercise Sabah’s rights after their failures, including protesting the Sabah Law Society’s action against the 40 per cent Special Grant of Net Revenue which has now been clearly declared to be payable according to the Constitution by the Kota Kinabalu High Court in October 2025,” he said.

Jeffrey, who is also Tambunan State Legislative Member (SLM), said their failures also included refusing to join in the court action filed by Sabah Law Society on the validity of CSA66 and PMA66, which also affect the petroleum resources located under them.

“The same action must be taken by other Sabah leaders, in order to safeguard the best interests of Sabah for Sabah and its people, not hiding behind rhetorical slogans that prioritise Sabah by only paying lip service after getting positions and privileges, but no concrete action,” he said.

Jeffrey urged the people of Sabah and the leaders of Sabah to stand up and rise together without hesitation to defend the state’s rights in order to build a better and brighter future for all regardless of race, religion or belief, and not serve the interests and positions of individuals.

He noted that Sabah has a high rate of hardcore poverty, widespread unemployment, high illiteracy rates, the highest rate of sick people and outdated development.

Jeffrey said the political leaders and the people zhould be together to fight against injustice and wrongdoing that has prevented Sabah from growing and developing to its true potential and wealth.

“The fight is also not against the Federal Government but against the issues, rights and interests of Sabah under MA63 and the Federal Constitution which were agreed upon by the founding fathers and the independence of Malaysia and Sabah in 1963 but most of which have not yet been fulfilled. There is no basis to fear the Federal Government or leaders,” he said.

Jeffrey said that Sabahans respect the bold and appropriate steps taken by the Sarawak government to seek a ruling from the Federal Court on the constitutional validity and continued application of the PDA74, CSA66 and PMA66 which were passed and came into force in Sabah and Sarawak after the declaration of Emergency in 1969.

“For many years, many Sabahans have questioned the constitutionality and validity of PDA74 which has resulted in the illegal seizure of oil and gas resources from Sabah and Sarawak since 1976, and only returned a meager 5 per cent of the oil and gas produced.

Instead, the rights to the oil and gas resources were handed over to Petronas without any adequate compensation to Sabah and Sarawak, which is clearly in violation of Article 13 of the Federal Constitution,” he said.

On Feb 23, the state government filed a petition in the Federal Court to determine the constitutional validity and continued applicability of the Petroleum Development Act 1974,  Continental Shelf Act 1966 and Petroleum Mining Act 1966 to Sarawak.

Deputy Minister of Law, Malaysia Agreement 1963 and State-Federal Relations Sharifah Hasidah Sayeed Aman Ghazali said these federal Acts adversely affect and deprive the rights of Sarawak to the natural resources, including oil and gas, found in the seabed of the Continental Shelf within the boundaries as extended and defined by the Sarawak (Alteration of Boundaries) Order in Council 1954 and the Sarawak (Definition of Boundaries) Order in Council 1958.

She said under MA63 and the constitutional instruments annexed thereto, the sovereign rights to the petroleum resources in the seabed within Sarawak's boundaries, were vested on Malaysia Day by the British government, in Sarawak and not in the federation or federal government