KUALA LUMPUR: National oil company Petroliam Nasional Bhd (Petronas) is reportedly contemplating legal action to defend its longstanding monopoly over Malaysia's natural resources, according to a recent news report by CNA.
The move comes as the Sarawak state government pushes for greater control over the trading and extraction of oil and gas within the state.
Anonymous sources close to the matter revealed to CNA that Petronas is weighing the option of filing a court injunction in the coming days to prevent any escalation between Prime Minister Datuk Seri Anwar Ibrahim's federal administration and Sarawak's state government.
A court injunction would temporarily halt any action Sarawak could take against Petronas.
In addition, the report quoted lawyers as saying that unless the state government decides to resume negotiations with the national oil corporation over the control of natural resources, the dispute could escalate into a full-blown court battle.
"Sarawak has issued an ultimatum to Petronas to finalise an agreement that would give the state complete rights over the supervision over the trading of oil and gas extracted from the state by Oct 1."No middle ground has been reached (between Petronas and Sarawak) and the option at this point is to turn to the courts," said a senior government official privy to discussions on the matter between Petronas and Anwar together with his economic advisory committee.
The official, who spoke to CNA added that Anwar wants Sarawak's demands to be managed "at the corporate level with Petronas without involving the federal government".
Last week, Petronas president and group chief executive officer Tengku Tan Sri Muhammad Taufik told a media briefing that the group will continue to serve as a strategic partner to Sarawak. Contrary to the news report, Tengku Muhammad Taufik emphasised the importance of mutual recognition of aspirations and duties between Petronas and Sarawak, noting that both parties are engaged in ongoing discussions to strengthen their collaboration.
He also reiterated that Petronas' role extends beyond its corporate interests, emphasising the company's responsibilities to the nation.
"We want to continue being a partner to Sarawak. I understand there have been questions about where the negotiation is heading, but our aim is to build a win-win partnership," he said at a press conference in conjunction with the release of Petronas' first half-ended June 30, 2024 results.
Business Times has reached out to Petronas for further comment.