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PETRONAS’ leave application to hear the matter at the Federal Court under Article 4(4) of the Constitution has been declined today based solely on technical ground and it was ruled that the matter as framed falls outside of the Federal Court’s jurisdiction.
The Federal Court did not in any way determine or endorse the merits of the legal position taken by the Government of Sarawak to regulate upstream petroleum activity under its Oil Mining Ordinance 1958.
The Federal Court also noted the concession by the Government of Sarawak that the Petroleum Development Act 1974 (PDA 1974) was validly enacted. This reinforces PETRONAS’ view that only Parliament can legislate on matters relating to upstream petroleum industry including regulatory powers throughout Malaysia, both onshore and offshore by virtue of the PDA 1974.
The Federal Court’s decision today does not in any way impair PETRONAS’ ability to further pursue its legal actions, with the intent to seek clarity on its rights and position under the PDA 1974.
