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KUALA LUMPUR (June 5): Petroliam Nasional Bhd’s (Petronas) applications to stay the Kuching High Court’s hearing of Petroleum Sarawak Bhd’s (Petros) RM7.95 million bank guarantee claim related to gas supply have been dismissed, according to a report.

Petronas wants to stay the case until after the outcome of the case in the Kuala Lumpur High Court by Shell SDMS Sdn Bhd against Petronas and Petros, to determine the rightful recipient of payments for gas supplied to the company.

Judicial Commissioner Datuk Faridz Gohim Abdullah on June 5, however, dismissed two applications filed by Petronas on May 22, 2025, to stay or adjourn the case, DayakDaily reported.

“The hearing of the case should not be further delayed,” Faridz Gohim was quoted as saying. DayakDaily reported that Faridz Gohim ruled that the national oil company had shown no special circumstances to justify delaying the proceedings. The suit is scheduled for hearing on June 11. 

The action on Thursday (June 5) follows the Kuching High Court’s dismissal of Petronas' request for a stay application on the case on April 28. Faridz Gohim, as reported by Borneo Post, said Petronas didn’t show strong enough reasons to justify the delay, and the case filed by Petros was ready to move forward.

He added that waiting for the outcome of a related case in KL (filed by Shell SDMS) would slow down the resolution of the Petros case.

Petronas’ local counsel, Alex Ngu, had then said the company plans to appeal and asked for another stay while waiting for the Court of Appeal’s decision.

Petros reportedly is asking the court to return RM7.95 million paid to Petronas under a bank guarantee. Petros said the money was compensation for gas allegedly supplied in contravention of the Distribution of Gas Ordinance 2016, as Petronas is not the licensed gas aggregator in Sarawak.

The legal dispute between Petros and Petronas continues despite the signing of a joint declaration between the federal government and Sarawak on May 21, recognising both the Petroleum Development Act 1974 and Sarawak’s amended Distribution of Gas Ordinance 2016.

Prime Minister Datuk Seri Anwar Ibrahim said the declaration ensures Petronas' role would remain intact while formally recognising Petros' position in Sarawak.

The declaration was signed at Perdana Putra by Anwar and Sarawak Premier Tan Sri Abang Johari Tun Openg.

Edited ByPresenna Nambiar
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