Court to decide on Petronas’ claim over ownership

KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) move to seek exclusive ownership of the country’s petroleum resources, including in Sarawak, will be determined by the court, according to Prime Minister Tun Dr Mahathir Mohamad.

“The case has gone to court, so let the court decide. But on the devolution of power to Sarawak which was promised by the previous administration, the federal government will honour what had been committed,” he said after the Cabinet meeting yesterday.

Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg had on March 6 this year announced the state’s regulatory power over oil and gas (O&G).

On June 4, Petronas had gone to court to declare that under the Petroleum Development Act 1974 (PDA), it is the exclusive owner of the petroleum resources in the country, including Sarawak.

The national oil corporation filed an application before the Federal Court seeking a declaration on the PDA being the law applicable for the petroleum industry in Malaysia.

The application is also to state that Petronas is the exclusive owner of the petroleum resources as well as the regulator for the upstream industry throughout Malaysia, including in Sarawak.

“Petronas believes that the determination by the Federal Court would help provide clarity on its rights and position under the PDA.

“Petronas remains committed to support Sarawak’s aspiration to participate in the O&G industry in the state, for as long as it is within the framework of the PDA,” it said.