Kuala lumpur: The Federal Court today granted Petroliam National Bhd (Petronas) permission to initiate proceedings challenging the validity of several Sarawak ordinances related to oil and gas governance in the state. Chief Judge of Malaya, Datuk Seri Hashim Hamzah, presiding as a single judge, determined that Petronas met the necessary criteria for leave, indicating that the case will proceed for argument and examination under the Federal Court's original jurisdiction.
According to BERNAMA News Agency, Petronas' motion, filed in January under Article 4 (3), 4 (4), and 128 (1) of the Federal Constitution, seeks to question the legislative authority of the Sarawak State Legislature. The motion specifically targets the legislature's capacity to enact and enforce certain laws, seeking to invalidate multiple provisions, including Sections 7, 7A, and 8 of the Sarawak Distribution of Gas Ordinance 2016, among others.
Petronas argues that the Sarawak State Legislature overstepped its legislative boundaries as defined in the Federal Constitution, particularly concerning matters listed under List 1 of the Federal List in the Ninth Schedule. Petronas' legal representatives, Datuk Dr Cyrus Das and Khoo Guan Huat, emphasized the arguable nature of their case, stating that the legislature's authority under the Borneo States (Legislative Powers) Ordinance 1963 does not extend beyond gas distribution within the state.
Furthermore, Das contended that any state law implementing international treaties or agreements could potentially conflict with Article 76 of the Federal Constitution. In response, Sarawak State Attorney-General, Datuk Sri Saferi Ali, opposed the application, arguing that Petronas had not presented a substantial case. Sarawak State Legal Counsel, Datuk Sri J.C. Fong, also sought dismissal of the application, maintaining that the state had not infringed upon federal powers.
Senior Federal Counsel Ahmad Hanir Hambaly@Arwi, representing the Federal Government, informed the court of the government's neutral stance on Petronas's application. He affirmed that Petronas fulfilled the necessary requirements for leave under Article 4 (4) and highlighted the presence of a substantive case warranting further judicial examination.