Sarawak Files Petition To Determine Validity & Applicability Of Federal Acts On O&G Resources
KUCHING: The Sarawak Government filed a petition in the Federal Court on Monday to determine the constitutional validity and continued applicability of several federal Acts to Sarawak.
According to Deputy Minister in the Sarawak Premier’s Department (Law, MA63 and State-Federal Relations) Datuk Sharifah Hasidah Sayeed Aman Ghazali, the federal Acts, namely the Petroleum Development Act 1974, the Continental Shelf Act 1966, and the Petroleum Mining Act 1966, adversely affect and deprive state of its rights 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.
“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 1963 (MA63) 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,” she said in a statement issued on Monday.
Datuk Sharifah Hasidah said a determination of these constitutional issues would also provide clarity on the regulatory framework governing the oil and gas industry in the state, especially for investors in upstream and downstream activities.
She further explained that under MA63 and the accompanying constitutional instruments, the sovereign rights to the petroleum resources in the seabed within the state’s boundaries were vested in Sarawak, and not in the Federation or the federal government, on Malaysia Day by the British Government.
She added that 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, certificates and prospecting licenses.
“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.
“That Emergency was annulled by both Houses of Parliament in December 2011. Therefore, by June 2012, these two laws should no longer apply to Sarawak by reason of Article 150(7) of the Federal Constitution,” she explained.
According to her, Petronas had on 10 January 2026 filed an application seeking leave to apply to the Federal Court to challenge the validity of several state laws, purportedly to seek judicial clarity on laws regulating its petroleum operations, business and other activities in Sarawak.
The application is scheduled for hearing by the Federal Court on 16 March.
“The 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.
“Therefore, the Sarawak Government is also constrained to 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,” she said.
Notwithstanding the filing of the petition, Datuk Sharifah Hasidah reiterated the Sarawak Government’s commitment to continuing constructive discussions with the Federal Government to reach an amicable resolution of the issues, one that would strengthen national unity, promote more sustainable use of oil and gas resources, and enable Sarawak to contribute significantly towards the nation’s prosperity and economic growth. -UKASnews