Petronas and Sarawak Seek Separate Hearings in Oil and Gas Dispute

Putrajaya, 24 September 2026 – Petronas and the Sarawak government have asked the Federal Court to hear their competing oil and gas constitutional petitions separately, shifting immediate attention to the order of proceedings rather than the eventual merits of either case. For Malaysia’s energy sector, the procedural dispute matters because the legal boundaries between federal and state authority can affect licensing certainty, project planning and the terms under which companies invest.

At a directions hearing, counsel for Petronas told the court that Sarawak does not want the petitions consolidated and prefers its challenge to be heard first. Petronas argued that its petition should come first because it was filed earlier. The national oil company filed on 10 January 2026 and obtained leave on 16 March; Sarawak filed on 23 February. These dates establish the sequence of filings, but they do not determine the validity of either side’s constitutional position.