Malaysia’s Petronas wins right to challenge Sarawak gas laws in court
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Malaysia's Federal Court has granted Petronas, the national energy firm, permission to challenge gas distribution laws enacted by the state of Sarawak. The dispute centers on Sarawak's efforts to exert greater control over its natural gas resources, which comprise over 60% of Malaysia's reserves. Sarawak has passed laws and established its own company, Petros, to manage gas distribution within the state, creating conflict with Petronas, which is owned by the federal government. Petronas filed a motion in January seeking clarity on the legal framework governing its operations in Sarawak after two years of stalled negotiations. Sarawak responded with a counter-claim challenging three federal petroleum laws.
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