Federal Court to Hear Petronas, Sarawak Government Oil and Gas Disputes in January

PUTRAJAYA, October 19 2026— The Federal Court will hear separate petitions filed by Petroliam Nasional Bhd (Petronas) and the Sarawak Government challenging laws governing oil and gas matters over five days from Jan 25 next year.

Justice Datuk Rhodzariah Bujang fixed the hearing dates after the cases came up for directions today, adding that the petitions would be heard in the order they were filed.

However, the court panel will decide whether to first address Sarawak’s preliminary challenge to the validity of the Sarawak (Alteration of Boundaries) Order in Council 1954, which concerns the boundaries of the state’s territorial waters.

The court also directed both parties to submit their written arguments by Jan 11, with reply submissions due on Jan 18. Case management has been scheduled for Jan 12.

Petronas filed its petition on Jan 10 this year, seeking to challenge the Sarawak State Legislature’s authority to enact certain laws relating to matters under the Federal List of the Federal Constitution.

The Sarawak Government, which filed its petition on Feb 23, is seeking a determination on the constitutionality and continued applicability of several federal laws governing petroleum activities in the state.

Among others, the state is seeking a declaration that the Petroleum Development Act 1974, Continental Shelf Act 1966 and Petroleum Mining Act 1966 are unconstitutional and void as applied to Sarawak.

Both Petronas and the Sarawak Government also intend to request an enlarged Federal Court panel of nine or 11 judges to hear the petitions.

The disputes centre on the respective powers of the federal and state governments over oil and gas regulation in Sarawak.

-Bernama

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