In May 2025, Anwar declared that his government had reached a pact with the Sarawak state government headed by Premier Abang Johari Openg, where both Petronas and Petros would jointly develop the country’s oil and gas sector.
But in reality, the impasse between the two parties only worsened, Petronas officials privately acknowledged to CNA.
“The perception with Petronas heading to the courts first is that the national oil corporation would have got the go-ahead from Anwar,” said Azmi, adding that the pressure is now on the prime minister to take another stab at resolving the spat before the court hearings begin.
The respondents for Petronas’ Federal Court motion are the federal government and the Sarawak state government, Petronas said in a statement on Jan 12.
Petronas’ motion is to ensure the company continues to operate in full compliance with applicable laws and sound governance practices, it added. “It is not intended to challenge Sarawak’s development aspirations or hinder the role of (Petros) in the state’s energy sector.”
Samirul of Global Asia Consulting sees it slightly differently.
“For Anwar’s government, this episode represents less of a crisis than a moment of reckoning. It is a test of how Malaysia chooses to resolve profound federal questions through law, rather than through political force or improvisation,” he said.
SARAWAK’S LEGAL STRATEGY
“By escalating the matter to the apex court, Sarawak is institutionalising the dispute through constitutional channels rather than relying solely on political negotiation. The outcome could recalibrate the balance of authority between Putrajaya and resource-rich states,” noted Jamil.
Malaysia’s other states with hydrocarbon reserves are Terengganu and Kelantan.
Samirul said Sarawak’s legal gambit showed shrewd judgment and foresight.
“By initiating constitutional action rather than remaining in a purely responsive posture, Sarawak has repositioned itself from defensive respondent to agenda-setting litigant,” he said.
“This enables Sarawak to frame the dispute as concerning constitutional validity and historical rights grounded in the 1963 agreement rather than as a narrower regulatory disagreement over licensing or operational compliance,” Samirul added.
He was referring to the Malaysia Agreement 1963 – when Sarawak and Sabah joined the federation – that grants the two North Borneo states specific rights and autonomy, including greater control over the management of their natural resource.
Analysts also noted that Sarawak’s move to turn to the courts is a demonstration to the state’s electorate that the state safeguarding its autonomy through institutional channels.
“Sarawak’s move constitutes a deliberate consolidation strategy — legal, political, and symbolic — designed to redefine the terms on which future centre-state relations over petroleum resources will be negotiated,” Samirul said.
https://www.channelnewsasia.com/asia/malaysia-petronas-sarawak-federal-court-cases-oil-gas-anwar-5957156
