Case Timeline
Petronas v Sarawak: A Timeline of the Petroleum Rights Dispute
The modern phase — from the revocation of the 1969 Emergency to the ongoing constitutional challenge before the Federal Court
This timeline traces the modern phase of the dispute over Sarawak’s oil and gas resources, from the revocation of the 1969 Emergency to the ongoing constitutional challenge before the Federal Court.
| Date | Event |
|---|---|
| 2011 | The three emergency proclamations — including the 1969 Proclamation — are revoked, ending the Emergency (Essential Powers) Ordinance No. 7 of 1969. |
| 2012 | Parliament passes the Territorial Sea Act 2012; section 3(3) again limits Sarawak’s territorial waters to three nautical miles. |
| 2017 | Petroleum Sarawak Berhad (Petros) is established as a state-owned oil and gas company. The Sarawak Government sends a legal team to the UK to locate supporting documents on the state’s rights under MA63. |
| 2018 | Petronas files a suit in the Federal Court to affirm the PDA 1974’s validity. The court dismisses the application for want of jurisdiction. The Sarawak State Assembly passes the Oil Mining (Amendment) Bill to update the Oil Mining Ordinance 1958 and bring it in line with current upstream industry practices. |
| 2019–2020 | Effective January 1, 2019, Sarawak imposes a 5% sales tax on petroleum products under the State Sales Tax Ordinance 1998. Petronas does not pay; Sarawak sues. The High Court rules in Sarawak’s favour. The parties later settle: Petronas agrees to pay RM2 billion in tax, both withdraw their appeals, and the High Court’s ruling stands. Separately, Petros receives onshore mining leases in Miri and Marudi from the Sarawak Government. |
| 2024 | Petros sues Petronas over a demand for an RM7.95 million bank guarantee, arguing the Sarawak Gas Sales Agreement is illegal because Petronas lacks a licence under the Distribution of Gas Ordinance 2016. |
| Feb 2025 | The High Court dismisses Petros’s originating summons, holding that the bank guarantee was validly called and that the constitutional issues must be heard in the Federal Court. |
| May 2025 | The Federal and Sarawak governments sign a joint declaration acknowledging the co-existence of the PDA 1974 and Sarawak’s Distribution of Gas Ordinance 2016, and recognising Petros as the gas aggregator in Sarawak. The declaration does not resolve the ongoing court cases. |
| Jan 2026 | Petronas files a motion in the Federal Court seeking leave to challenge the constitutional validity of several Sarawak state laws. |
| 16 Mar 2026 | The Federal Court grants Petronas leave to commence proceedings. Chief Judge of Malaya Hashim Hamzah finds an arguable case and orders the petition to be filed within 21 days. |
| May 2026 | Petronas applies to have its petition heard separately from Sarawak’s. The Sabah-based group Sabar applies to intervene in Sarawak’s petition. Sarawak amends its petition, arguing the PDA 1974 was enacted without the constitutionally required request from the State Legislature under Article 76(1)(c). |
| June 2026 | Case management held before a Federal Court deputy registrar to set a hearing date for both petitions. |
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