“The state of Sarawak, whose governing coalition is a key ally in Anwar’s federal unity government, announced on Monday it had filed a petition in the Federal Court challenging the constitutional validity of three federal petroleum laws that provide the legal foundation for Petronas’ decades-long domination of Malaysia’s oil and gas sector.”
“Sarawak holds more than 60 per cent of Malaysia’s natural gas and sits at the heart of the country’s energy plans. Petronas, meanwhile, is a cornerstone of federal revenues.”
“The dispute has been building since 2024, when Sarawak moved to position Petroleum Sarawak, or Petros, as the primary gas distributor within the 124,450 sq km (38,050 square-mile) state’s borders, putting it on a collision course with Petronas over overlapping regulatory claims.”
“Gabungan Parti Sarawak, the state’s ruling coalition, is one of the anchor blocs in Anwar’s unity government. Sabah and Sarawak together hold 56 of Malaysia’s 222 parliamentary seats – a share large enough to determine the fate of federal governments in close contests.”