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Daily Express
4 days ago
- Business
- Daily Express
Sarawak High Court rejects Petronas bid to delay Petros suit
Published on: Friday, June 06, 2025 Published on: Fri, Jun 06, 2025 By: FMT Reporters Text Size: PETALING JAYA: The Sarawak High Court has dismissed two applications filed by national oil company Petronas to postpone or stay the hearing of a suit brought by Petroleum Sarawak Bhd, the state's sole gas aggregator. Judicial commissioner Faridz Gohim Abdullah rejected the applications and confirmed that the case will be heard on June 11, the Dayak Daily reported. Advertisement Faridz ruled that no special circumstances had been presented to justify a stay or adjournment. 'The hearing of the case should not be further delayed,' he was quoted as saying. Petros is suing to restrain Petronas from utilising funds of RM7.95 million received under a bank guarantee previously given by Petros in respect of the supply of gas. Petros contends that Petronas's demand for payment under the bank guarantee was 'unconscionable' or 'unlawful'. In April, Faridz dismissed an application by Petronas to suspend all legal proceedings on grounds that Petronas had failed to show the existence of any sufficiently exceptional or compelling grounds to stay the proceedings. In October last year, Petronas had called on the bank guarantee after demanding payment of RM28,136,403.08 from Petros for gas supplied. Petros filed its suit against Petronas on Oct 15, 2024. The Sarawak state-owned oil company simultaneously sought an ex-parte interim injunction to restrain Petronas from pursuing the payment and receiving monies under the bank guarantee. However, Faridz ruled that Petros's injunction application had become 'redundant' as Maybank Islamic Bhd had already paid Petronas on the guarantee. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
28-04-2025
- Business
- New Straits Times
Petronas fails to halt Petros suit on gas payment
KUCHING: Petronas has failed in its bid to delay a suit that Petros had filed to stop the national petroleum company from demanding payment for natural gas. On Oct 15 last year, Sarawak-owned petroleum company Petros filed a suit seeking a declaration that Petronas' demand for a RM7.95 million bank guarantee for gas payment was "unconscionable, unlawful and, therefore, null and void". Petronas had sought to stay Petros' suit until a case filed by Shell SDMS Sdn Bhd against Petronas and Petros in the Kuala Lumpur High Court had been settled. Shell SDMS's court action was to determine which company it should pay for the natural gas it received. Judicial Commissioner Datuk Faridz Gohim Abdullah in dismissing Petronas' application agreed with Petros lead counsel Sim Hui Chuang and Sarawak government special counsel Datuk Seri J.C. Fong that there were no special circumstances to warrant a stay. Faridz also agreed that a stay of the Kuching proceedings while waiting for the Kuala Lumpur case to be disposed would be an injustice to Petros and the public interest. Petros and Sarawak argued the Kuching case was ready to be heard, the Kuala Lumpur proceedings were still at pre-trial case management, with the next hearing on May 23. They argued that there was no indication when the Kuala Lumpur case would start, and a stay of the Kuching proceedings could potentially be for years. The federal and Sarawak governments have been added to appear in the hearing as amicus curiae (friends of the court). Faridz has set June 11 to hear Petros' originating summons. Petronas lead counsel Alex Ngu's application for a stay on the dismissal of the injunction was also dismissed by the court. The judicial commissioner said Ngu should make a formal application on the appeal. Petros is disputing Petronas's demand for a RM7.95 million bank guarantee under the Sarawak Gas Sales Agreement (SGSA) dated Dec 30, 2019. Petros contends that the SGSA is invalid because Petronas lacks a license under Sarawak's Distribution of Gas Ordinance 2016 (DGO 2016) to distribute gas in the state. Petronas, on the other hand, maintains that its rights under the federal Petroleum Development Act 1974 (PDA) supersede state laws like the DGO 2016. In an affidavit filed on Nov 5, last year, Petronas said it was the legitimate aggregator of natural gas, including for domestic distribution, and that the SGSA was valid and enforceable.
