PM urges ceasefire in Petronas-S'wak dispute, to talk with Abang Johari

Summary

• Prime Minister Anwar Ibrahim calls for a ceasefire in the dispute between Petronas and the Sarawak government.

• He spoke with Sarawak Premier Abang Johari Openg, who is currently in London, and they agreed to have further discussions upon the latter’s return.

• Sarawak issued Petronas Carigali a legal notice accusing it of operating illegally and demanding a license within 21 days.

Prime Minister Anwar Ibrahim urged all parties to cease any actions or statements related to the dispute between Petronas and the Sarawak government on the operations of state-owned Petroleum Sarawak Bhd (Petros).

He revealed that he spoke to Sarawak Premier Abang Johari Openg, who is currently in London, and that both parties have agreed to further discussions once the premier returns to Malaysia.

“Upon the premier’s return from an official visit to London, United Kingdom, we will urgently hold further discussions to finalise matters.

“In the meantime, on the basis of mutual interest, all parties should cease from taking any action or issuing any statement,” said Anwar in a statement today.

He expressed confidence that the issue could be resolved amicably.

“I have strong confidence that this issue can be resolved with wisdom by firmly adhering to a healthy and meaningful discourse,” he added.

Johari, meanwhile, reportedly acknowledged ongoing friction with Petronas but remained optimistic about a resolution.

“In this issue, we’re playing the game a bit with Petronas, but we will resolve it,” he was quoted as saying by the Sarawak Public Communications Unit.

“The prime minister contacted me, and we agreed to move forward with a fair and sincere approach,” he said, stressing that Sarawak had fulfilled its responsibilities despite not receiving additional revenue.

He made the remarks during a “Lan Berambeh Anak Sarawak 2025 United Kingdom Edition” event, attended by Sarawakian students from the UK, France, and Germany.

Johari said he assured Anwar of his commitment to achieving a “win-win solution” on the sharing of oil and gas revenues.

Legal dispute

The long-standing dispute intensified after Petronas confirmed yesterday it received a legal notice from the Sarawak government, accusing its exploration subsidiary Petronas Carigali of operating illegally in the state.

According to the notice, Petronas Carigali violated Section 7(e) of the Sarawak Distribution of Gas Ordinance 2016 and must apply for the appropriate licence within 21 days or face financial penalties under Section 21A of the same law.

This comes after a Kuching High Court last week dismissed Petronas’ application for an injunction to prevent the court from hearing a suit filed by Petros regarding gas payments.

Sarawak has maintained that it holds 60.87 percent of the country’s proven and probable petroleum reserves and is responsible for 90 percent of Malaysia’s liquefied natural gas exports.

The uncertainty surrounding the legal battle has reportedly led to US oil giant ConocoPhillips pulling out of a major deepwater project off the coast of Borneo.

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