PRESS STATEMENT BY THE SARAWAK GOVERNMENT

nabalunews
5 days ago
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PEJABAT PREMIER SARAWAK OFFICE OF THE PREMIER OF SARAWAK

KUCHING:

1. Today, 23rd of February 2026, the Sarawak Government has filed a petition in the Federal Court, to determine the constitutional validity and continued applicability of the Petroleum Development Act 1974, the Continental Shelf Act 1966, and the Petroleum Mining Act 1966 ("the federal Acts") to Sarawak.

2. These federal Acts adversely affect and deprive the rights of Sarawak to the natural resources, including oil and gas, found in the seabed of the Continental Shelf within the boundaries as extended and defined by the Sarawak (Alteration of Boundaries) Order in Council 1954 and the Sarawak (Definition of Boundaries) Order in Council 1958.

3. Under the Malaysia Agreement 1963 and the constitutional instruments annexed thereto, the sovereign rights to the petroleum resources in the seabed within Sarawak's boundaries, were vested on Malaysia Day by the British Government, in Sarawak and not in the Federation or federal Government.

4. Item 2(c) of the Ninth Schedule of the Federal Constitution vests legislative authority in the Dewan Undangan Negeri, to regulate the exercise of such petroleum rights through issuance of mining leases and certificates and prospecting licenses.

5. The Continental Shelf Act, 1966 and the Petroleum Mining Act, 1966 were originally applicable to the States of Malaya, but extended to Sarawak by way of an Ordinance passed after the Proclamation of Emergency 1969.

6. That Emergency was annulled by both Houses of Parliament in December 2011. Therefore, by June 2012, these two (2) laws should no longer apply to Sarawak by reason of Article 150(7) of the federal Constitution.

7. Petronas had on 10th of January 2026 filed an application to seek leave to apply to the Federal Court to challenge the validity of several state laws purportedly to seek judicial clarity on these laws which regulate Petronas' petroleum operations, business and other activities in Sarawak. This Application is scheduled for hearing by the Federal Court on 16th of March 2026. Sarawak Government will be objecting to this Application which does not fall within the Federal Court's exclusive original jurisdiction under Article 128(1)(a) of the Federal Constitution.

8. Therefore, Sarawak Government is constrained to also seek the determination of the Federal Court under Article 4(3) and 128 (1) of the Federal Constitution as to the validity of the said federal Acts in so far as to their application to Sarawak.

9. The said federal Acts affect the boundaries of Sarawak, established before Malaysia Day, and Sarawak's rights to the petroleum resources found in offshore land within Sarawak's boundaries. Sarawak is justified, in the safeguarding the legitimate interests and rights of Sarawak and its people, which are enshrined in the Federal Constitution as well as in the Malaysia Agreement and the constitutional instruments annexed thereto, by seeking a ruling from the Federal Court on the continuing application and effect of these Federal Acts in Sarawak. It must be noted that Sarawak's rights to seek such a ruling from our apex court, is embedded in Articles 4(3) and (4) of the Federal Constitution.

10. The determination of these constitutional issues will also provide clarity on the regulatory framework for the oil and gas industry in Sarawak especially to investors in the upstream and downstream businesses of the industry.

11. Notwithstanding the filing of the Petition, the Sarawak Government remains committed to continuing constructive discussions with the Federal Government, to reach an amicable resolution of these issues that would strengthen national unity, promote more sustainable use of our oil and gas resources, and enable Sarawak to contribute significantly towards Malaysia's prosperity and economic growth.