Give 30% stake in Petronas, 30% membership of its board of directors to Sarawak as a way to resolve Petros-Petronas dispute, suggests Chieng Jen

KUALA LUMPUR, Jan 29 2026: Stampin MP Chong Chieng Jen has suggested that Sarawak be given a 30 per cent stake in Petronas and 30 per cent of the members of the Petronas board of directors consisting of Sarawakians.

Chong Chieng Jen: Referral to the court is not a good way to resolve this dispute because, through the court, it is winner takes all and loser loses all. 

He said this is a way to resolve the on-going dispute between Petros and Petronas.

“With a 30 per cent equity stake, Sarawak will be entitled to 30 per cent of all dividends paid by Petronas in the future while Petronas remains the main regulator in the country.

“Whatever success Petronas has, Sarawak owns 30 per cent. Let us progress and prosper together,” Chong said during the debate on the motion of thanks on the Royal Address in Parliament today.

He said although Prime Minister Anwar Ibrahim together with Sarawak Premier Abang Johari Openg have announced several times that a settlement agreement between Petros and Petronas has been reached, “we still see the two companies fighting each other in court”.

“In my opinion, the dispute between Petros and Petronas will continue forever because one person's gain is another's loss.

“As long as there are two parties claiming rights to the same natural resources, there is bound to be conflict.

“Referral to the court is not a good way to resolve this dispute because, through the court, it is winner takes all and loser loses all.

“Either way, it is not good for the country,” Chong, who is also Sarawak DAP chairman, said.

On Jan 12, 2026, Petronas filed a motion at the Federal Court in Putrajaya to seek clarity on the applicable regulatory framework governing its operations in Sarawak.

The oil company named the federal government and Sarawak government as respondents.

The application seeks for determination by the Federal Court on the legal position applicable to Petronas’ operations in Sarawak, to ensure that the company continues to operate in full compliance with the applicable laws and sound governance practices.

It is not intended to challenge Sarawak’s development aspirations or hinder the role of 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.

While progress has been made on many commercial arrangements and partnerships – including the signing of Commercial Settlement Agreement (CSA) in 2020 – there have been differences which led to uncertainty in respect of the obligations applicable to Petronas.