Petronas Court Bid is Due Diligence, Not Hostility to Sarawak: Ex-Official
In a recent development, former senior Treasury official Nik Azmi Nik Daud has come forward to defend Petronas' decision to seek judicial clarificatio...
In a recent development, former senior Treasury official Nik Azmi Nik Daud has come forward to defend Petronas' decision to seek judicial clarification on Sarawak's oil and gas laws, asserting that the move is a reflection of responsible governance rather than an adversarial challenge to the state's authority. This statement was issued in response to criticisms from Parti Pesaka Bumiputera Bersatu (PBB) Youth, which accused the national oil company of undermining Sarawak's regulatory framework by opting for a court reference instead of continuing negotiations.
Nik Azmi expressed disappointment over the inflammatory accusations from PBB Youth, emphasizing that such rhetoric from a political youth wing is counterproductive. He clarified that Petronas is not acting in defiance of Sarawak law but is seeking legal clarity in a situation where overlapping laws and competing interpretations exist. "Let's be clear: this is not Petronas undermining Sarawak law or going rogue," he stated, highlighting that the company is merely asking the courts for interpretation to reconcile state and federal frameworks.
The controversy stems from PBB Youth's argument that the court reference could weaken Sarawak's regulatory framework and questioned whether Petronas had obtained federal approval before filing the application. They called for further federal-state discussions to resolve the issue amicably. However, Nik Azmi countered this by stressing that portraying the legal move as hostile is inaccurate and harmful to national cohesion. "Stop trying to undermine national unity. Trying to portray it as a hostile act is not only misleading — it tears us apart when Malaysia doesn't need more disunity," he remarked.
He further elaborated that seeking judicial interpretation is a standard practice in democratic societies to ensure the rule of law. "Going to court to seek interpretation is not an attack on Sarawak's laws. It's precisely how overlapping state and federal frameworks are meant to be reconciled. That's the rule of law in practice," Nik Azmi explained. He warned that rejecting the courts due to political discomfort poses a greater threat to institutional integrity, stating, "The real danger to the rule of law is when political actors insist on unilateral interpretations and reject the courts simply because they might not like the outcome."
In addition, Nik Azmi dismissed calls for more talks, noting that federal and state leaders had already established a framework for cooperation. He referenced a joint declaration signed by Prime Minister Anwar Ibrahim and Sarawak Premier Abang Johari Openg in May 2025, which outlined principles for oil and gas collaboration. According to the declaration, Sarawak leads domestic gas supply, while Petronas retains LNG exports, promoting cooperation over confrontation. Nik Azmi emphasized that this agreement left operational matters to be handled within the established legal and regulatory frameworks, making further negotiations redundant.
This situation underscores the complexities of federal-state relations in Malaysia, particularly in the context of resource management. Oil and gas are critical sectors for both Sarawak and the federal government, with significant economic and political implications. The judicial clarification sought by Petronas aims to resolve ambiguities that could hinder efficient operations and investment in the industry. By turning to the courts, Petronas is demonstrating a commitment to legal due diligence, which is essential for maintaining investor confidence and ensuring sustainable development.
Moreover, Nik Azmi's defense highlights the importance of institutional processes in a democracy. Judicial review serves as a mechanism to balance competing interests and uphold the constitution, preventing conflicts from escalating into political standoffs. His remarks serve as a reminder that legal avenues should be respected and utilized to foster unity rather than division. As Malaysia navigates these challenges, the emphasis on rule of law and cooperative governance will be crucial for national stability and progress.
In conclusion, the Petronas court bid represents a prudent step towards clarifying legal uncertainties in Malaysia's oil and gas sector. Nik Azmi's insights reinforce that this move is not an act of hostility but a necessary measure for institutional due diligence. By adhering to legal processes and honoring existing agreements, both federal and state entities can work together to achieve mutual benefits and strengthen national unity.
