In response to Sarawak’s determined challenge to greater control over the state’s oil-related products, Malaysia’s regional oil company Petronas is considering bringing its fight to the courts to protect its monopoly over the country’s natural resources.
According to federal sources, Petronas is considering filing a court order in the upcoming days to stop any conflict between Sarawak state authorities and Prime Minister Anwar Ibrahim’s management.
A court order may temporarily block any legal action Sarawak may get against Petronas. Attorneys argued that the conflict could turn into a full-fledged legal fight unless the state government decides to begin negotiations with the federal oil corporation regarding the control of the natural resources.
Petronas has been given an order to finalize an arrangement that would grant the state full authority over the guidance of the trading of oil and gas extracted from the condition by October 1.
A senior government official who has been closely monitoring the discussions between Petronas and Mr. Anwar and his economic advisory committee said,” No middle ground has been reached ( between Petronas and Sarawak ), and the option is now to go to court.”
Given the differences involved, the official, who spoke to CNA on the condition of anonymity, added that Mr. Anwar wants to manage Sarawak’s needs “at the commercial stage with Petronas without involving the federal government.”
Petronas did not respond to CNA’s request for comment on the possibility of bringing legal action against the Malaysian courts demanding that it give the Sarawak state government’s wholly owned Petroleum Sarawak Bhd ( Petros ) all the rights to the distribution and sale of liquefied natural gas ( LNG ) in exchange for a comment.
In response to media inquiries on Thursday ( September 5 ), Petronas president Tengku Muhammad Taufik stated that concerns have been raised by LNG buyers and upstream players, particularly regarding the security of fuel supply, in light of Petros ‘ proposal to become the sole gas aggregator for Sarawak.
” We have seen ourselves as one of the primary partners of nations like Japan and South Korea, and they want assurance that supply, if developed through an integrated model, will be able to be supplied reliably and cost-effectively, ( which is ) now more important than ever,” he told reporters in the capital Kuala Lumpur.