Recent developments highlight the ongoing legal and operational tussle between Sarawak’s Petros and federal Petronas over oil and gas rights. Petros challenged Petronas’ monopoly under the 1974 Petroleum Development Act, asserting Sarawak’s rights under the 1958 Oil Mining Ordinance and its own Gas Distribution Ordinance. The Kuching High Court rejected Petronas’ bid to delay Petros’ lawsuit over a RM7.95 million gas payment dispute, with the hearing set for June 11, 2025. Meanwhile, ConocoPhillips has pulled out of a major Sarawak project amid this conflict, signaling investor concerns. This dispute underscores Sarawak’s push for greater control over its resources, backed by constitutional and state laws, despite federal resistance.

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