PETRONAS Seeks Clarity on Petroleum Regulatory Framework in Sarawak

12 January 2026 – 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 respondents are the Federal Government and State Government of Sarawak.

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 Petroleum Sarawak Berhad (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.

PETRONAS thereby 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.

In the meantime, PETRONAS 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.

PETRONAS remains committed to transparent communication regarding its operations and partnership efforts.