PDA: Up to court to decide, Dr M says of Petronas suit

KUCHING: Prime Minister Tun Dr Mahathir Mohamad said he would leave it to the court to decide on the suit brought by Petroliam Nasional Bhd (Petronas) against the Sarawak government.

“I will leave it to Petronas whether they can succeed or not in the court action they have taken,” he said during a press conference after the federal cabinet meeting in Putrajaya yesterday.

Petronas had on Monday filed application before the Federal Court seeking for a declaration on the Petroleum Development Act (PDA) 1974 being the law applicable for the petroleum industry in Malaysia.

The oil and gas company is seeking to clarify that under the law, it is the exclusive owner of the petroleum resources as well as the regulator for the upstream industry throughout Malaysia, including in Sarawak.

Dr Mahathir said Petronas claimed that the PDA gives the company certain powers while the Sarawak government also said they are also entitled to exercise such powers.

“So the case has gone to the court so it’s up to the court to decide.”

When asked whether the Pakatan Harapan government would honour the devolution of power to Sarawak that was agreed by the previous Barisan Nasional administration, Dr Mahathir said the present government would honour “all that we have committed to”.