KUCHING – The Sarawak Government has opted to leave the disputes over ownership, management, and regulation of the state’s oil and gas resources to the courts.
Premier Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari Tun Datuk Abang Haji Openg refrained from further comment due to ongoing legal proceedings.
“Wait for the court… wait for the court,” he told reporters at the Asia Pacific Aerospace Conference & Exhibition (APACE) 2026, repeating the phrase to emphasise that the matter is sub judice.
His statement followed queries about remarks from Datuk Seri Azalina Othman Said, Minister in the Prime Minister’s Department (Law and Institutional Reform), who pointed out that the Malaysia Agreement 1963 (MA63) does not address the management, ownership, or regulation of oil and gas.
She added in Parliament that the sector is governed under federal law, specifically the Petroleum Development Act (Act 144).
The dispute intensified on 12 January 2026, when Petroliam Nasional Berhad (PETRONAS) filed an application at the Federal Court seeking clarification on the regulatory framework for its operations in Sarawak.
The case aims to define the division of powers between the federal and state governments regarding hydrocarbon resources.
Analysts note that this legal challenge arises amid ongoing debates over state rights under MA63, with Sarawak pursuing greater control over its natural resources.
The Premier’s measured response reflects the state government’s decision to respect judicial processes while safeguarding its interests in oil and gas governance.
Legal experts have indicated that the Federal Court’s ruling could set a precedent for managing petroleum resources in Malaysia and may influence federal-state relations in the energy sector.
Sarawak’s approach demonstrates the government’s preference for judicial resolution over political debate on complex constitutional and resource ownership issues, leaving the matter in the hands of the judiciary for definitive guidance.
