THE federal court has dismissed Petronas’ application for leave to seek a declaration that it is the exclusive owner of all petroleum resources in the country.
The apex court’s decision was reported by The Edge Markets.
The national oil company had asked for the court declaration to clarify its rights and position under the Petroleum Development Act 1974 (PDA) and to declare that it is also the regulator for the upstream industry throughout the country.
Chief Judge of Malaya Ahmad Maarop was the sole federal court judge presiding today, the Malay Mail reported.
It said Ahmad ruled that Petronas should have brought its application to the high court instead, as the federal court would only hear a matter if it involved an invalid law.
Petronas filed its challenge earlier this month in a move against Sarawak, which argued that the state had full rights and regulatory authority over its oil resources and upstream and downstream aspects of the petroleum industry.
Sarawak Chief Minister Abang Johari Openg said in March this meant that Petronas would have to secure a prospecting licence from the state government.
Sarawak has also launched its own oil and gas exploration company, Petroleum Sarawak Bhd (Petros), which Abang Johari asserted would have the “same rights” as Petronas.
The Malay Mail also reported that Petronas wants the courts to declare that the PDA overruled the Sarawak Oil Mining Ordinance (OMO) 1958 as the ordinance was drafted before Malaysia was formed.
The OMO was used by the Sarawak government to inform Petronas that the state would regulate its upstream oil and gas activities from July 1.
The ordinance would also require Petronas to operate with a licence from the state.
Sarawak holds that Malaysia’s formation does not invalidate the OMO, said reports on the court’s decision today. –THE MALAYSIAN INSIGHT
CM: Sarawak welcomes Federal Court decision over Petronas legal challenge
KUCHING — Sarawak has welcomed the Federal Court decision today denying Petronas leave to commence a legal challenge against the state government over the national oil company’s right to regulate the state’s oil and gas upstream activities.
“Syukur Alhamdulillah (Praise be to God), Sarawakians have just won in court today. Thank you so much to our legal team and let us all pray for the best in moving forward,” Chief Minister Datuk Patinggi Abang Johari Tun Openg said in his official Facebook post.
In Putrajaya earlier today, Chief Judge of Malaya Tan Sri Ahmad Maarop dismissed the Petronas application for leave to commence proceedings against the Sarawak government and ordered the national oil company to pay RM50,000 in costs to the state government.
Petronas had filed an application on June 6 for leave to commence proceedings under Article 4 (4) of the Federal Constitution to seek a declaration that the Petroleum Development Act 1974 (PDA) applied in respect of the regulation of upstream activities in Sarawak.
It sought the court’s declaration that the PDA was duly enacted by Parliament, and it states that Petronas is the exclusive regulatory authority for the upstream industry throughout Malaysia, including in Sarawak. The company had also sought a declaration that the OMO was impliedly repealed by the PDA.
Petronas was represented by lawyer Datuk Malik Imtiaz Sarwar while Sarawak state legal counsel Datuk Seri JC Fong appeared for the state government. — Bernama
THE MALAYSIAN INSIGHT MALAY MAIL / BERNAMA
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