Petronas fails in bid for court to hear O&G complaint
V Anbalagan | June 22, 2018
FREE MALAYSIA TODAY
Justice Ahmad Maarop says the declaration sought by Petronas does not fall within the ambit of Articles 4(4) and 128 of the Federal Constitution.
State legal counsel JC Fong says the Sarawak government will work with Petronas for the well-being of the industry.
PUTRAJAYA: Petroliam Nasional Bhd (Petronas) today suffered a setback after the Federal Court refused to hear whether Parliament is competent to make laws on oil and gas exploration activities nationwide.
Chief Judge of Malaya Ahmad Maarop said the court had no jurisdiction to hear the matter as the declaration sought did not fall within the ambit of Articles 4(4) and 128 of the Federal Constitution.
“Petronas did not ask for a specific declaration whether Sarawak’s Oil Mining Ordinance (OMO) 1958 is valid,” he said.
He added that the Sarawak government had not denied that Parliament has the power to enact the Petroleum Development Act (PDA) 1974.
The court awarded RM50,000 in costs.
Following the decision, Petronas lawyer Malik Imtiaz Sarwar withdrew the stay application to stop the state from enforcing its laws effective July 1.
“It is academic since the court has no jurisdiction to hear the declaration sought,” he said.
The Sarawak government had made it mandatory for all oil and gas industry players operating in the state to be licensed under its OMO and Gas Distribution Ordinance beginning July 1.
In March, the state launched Petroleum Sarawak Bhd (Petros) as its oil and gas regulatory and supervisory authority, reportedly with the blessing of the previous federal government.
On June 4, the national oil company filed an application for leave to commence proceedings on its claim over ownership rights to Sarawak’s oil and gas resources.
However, the state government objected, saying the apex court was the wrong forum and that the dispute should begin in the High Court.
Sarawak state legal counsel JC Fong told reporters the state government would work with Petronas for the well-being of the oil and gas industry.
“However, we want Petronas to follow the state laws while we will comply with the federal law,” he said, adding that it would enforce its rights without hurting anybody
“Petronas has to trust us,” he said.
Malik said he would seek further instruction from the Petronas management regarding the next course of action.
“We will study today’s court ruling. The issue is very much alive,” he said, adding that the Federal Court had not ruled that the PDA was invalid.
It is learnt that Petronas could either file a fresh leave application with a modified prayer for a declaration, or institute a suit in the High Court.
