KUCHING, April 28 — The High Court has dismissed an application by Petroliam Nasional Berhad (Petronas) for a stay of proceedings of an originating summons (OS) by Petroleum Sarawak Berhad (Petros) to nullify RM7.95 million bank guarantee demand by Petronas.
Judicial Commissioner Datuk Faridz Gohim Abdullah, who made the ruling, said there are no special circumstances and compelling reasons for the originating summons to be stayed pending full and final disclosure of prior proceedings.
He also fixed June 11 for a hearing of the OS filed by Petros pending the outcome of Petronas's application to appeal against today’s ruling.
In the OS, Petros is seeking a declaration that Petronas's demand on its bank guarantee on October 14, 2024, was unconscionable and unlawful and, therefore, null and void.
The demand concerns payment for natural gas supplied by Petronas to Petros under a gas supply agreement dated December 30, 2019.
In a previous hearing, Petros, through its counsel Sim Hui Chang, pleaded that the agreement was frustrated by the amendment to Section 7 of the Distribution of Gas Ordinance (DGO) 2016, enacted in November 2023.
This amendment states that no person other than the gas aggregator may supply or distribute gas in Sarawak without a licence issued by the Director of Gas Distribution.
Petros contended that it is unconscionable for Petronas to demand payment for gas supplied unlawfully, in contravention of the Ordinance.
However, Petronas’ counsel Alex Ngu denied that it is subject to the DGO, asserting that it should only be bound by the Petroleum Development Act 1974.
— Bernama
