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Sarawak Seeks Federal Court Ruling on Validity of Federal Petroleum Laws

KUCHING, Feb 23 — The Sarawak government has filed a petition in the Federal Court seeking a ruling on the constitutional validity and applicability of several federal petroleum laws in the state.

Deputy Minister in the Premier’s Department (Law, MA63 and State-Federal Relations), Datuk Sharifah Hasidah Sayeed Aman Ghazali, said the petition concerns the Petroleum Development Act 1974, Continental Shelf Act 1966 and Petroleum Mining Act 1966.

She said the federal laws were seen as affecting Sarawak’s rights over natural resources, including oil and gas located beneath the seabed within its legally defined boundaries.

She explained that under the Malaysia Agreement 1963 and related constitutional instruments, ownership of petroleum resources in Sarawak’s seabed was vested in the state by the British Government on Malaysia Day, not the federal government.

She added that the Federal Constitution also grants legislative authority to the Sarawak State Legislative Assembly to regulate petroleum activities, including issuing mining leases and licences.

Sharifah Hasidah noted that the Continental Shelf Act 1966 and Petroleum Mining Act 1966 were originally applicable to Malaya but were extended to Sarawak during the 1969 Emergency.

However, she said the annulment of the Emergency in December 2011 meant the laws should no longer apply to Sarawak from June 2012.

She also said Petroliam Nasional Berhad had filed an application challenging several Sarawak petroleum-related laws, with the hearing scheduled for March 16.

She said Sarawak would oppose the application and seek a Federal Court ruling to clarify the legal position.

She added that the move is aimed at safeguarding Sarawak’s rights while providing certainty for the oil and gas industry.

Despite the legal action, she said Sarawak remains committed to discussions with the federal government to reach an amicable solution that supports national unity and economic growth.

-wilayah.com.my

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