Petroliam Nasional Berhad v Kerajaan Negeri Sarawak & Kerajaan Malaysia

Federal Court · · Constitutional & Administrative Law

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Petroliam Nasional Berhad v Kerajaan Negeri Sarawak & Kerajaan Malaysia
CourtFederal Court
Judgment Date16 March 2026
Date Uploaded4 May 2026
Legal TopicsConstitutional & Administrative Law
Parties

Pempetisyen: Petroliam Nasional Berhad (Petronas)

Respondent(s):

  • Kerajaan Negeri Sarawak
  • Kerajaan Malaysia
Bench

YAA Datuk Seri Hashim Bin Hamzah

Facts & Background
  • The applicant, PETRONAS, sought leave to commence proceedings in the Federal Court.
  • The applicant's core contention was that the Sarawak Legislature had acted beyond its legislative competency in enacting certain state laws.
  • These laws purportedly encroached upon areas exclusively within federal jurisdiction, including those related to petroleum exploration, exploitation, and environmental regulations concerning international treaties.
Issues for the Court
  • Whether the Federal Court has original jurisdiction to hear challenges against state legislation on grounds of legislative incompetency.
  • Whether the applicant has demonstrated that leave to commence proceedings is necessary and that they possess an arguable case.
  • The extent to which Sarawak state laws, particularly those referencing the continental shelf and offshore areas, are valid in light of federal legislation and the Federal Constitution.
Decision
  • The Court granted leave to the applicant to commence proceedings in the Federal Court.
  • The Court found that the applicant had shown that leave was necessary and that they had an arguable case.
  • The Court affirmed that challenges to legislative competency are within the exclusive original jurisdiction of the Federal Court.
Link to JudgmentView Full Judgment

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