• Sarawak accuses Petronas of operating its Miri Crude Oil Terminal without a required license.
• Petronas has been given 21 days to comply or face financial penalties.
• Negotiations between Petronas and Sarawak's Petros have stalled, raising concerns about federal revenues.
• Prime Minister Anwar Ibrahim is optimistic about resolving the dispute through discussions.
• The issue reflects broader tensions over hydrocarbon resource control in Malaysia.

The Sarawak state government has accused Petronas, Malaysia's national oil corporation, of operating the Miri Crude Oil Terminal without a necessary license, escalating tensions in a long-standing dispute over gas distribution rights. Local media have reported that Petronas Carigali, a subsidiary of Petronas, was given 21 days to rectify the licensing issue under Sarawak's laws, with the threat of financial penalties looming if compliance is not met, according to Channel News Asia and Channel News Asia.

Petronas has stated that its subsidiary is operating under federal law and is thus required to comply with all relevant regulations. The company emphasized its commitment to engage with both the state government of Sarawak and Petros, Sarawak's state-run energy firm, in an effort to clarify regulatory issues and security operational continuity for all stakeholders involved, as reported by Reuters and South China Morning Post.

Negotiations between Petronas and Petros have stalled since last year, raising concerns about the potential impacts on Petronas' revenues, which are vital for the federal government given that Sarawak holds over 60 percent of Malaysia's gas reserves. This dispute has created unease within the investment community regarding Sarawak's operational climate in the energy sector, noted Channel News Asia.

On May 4, Prime Minister Anwar Ibrahim expressed confidence that the ongoing dispute would be resolved through dialogue with Sarawak's Premier Abang Johari Openg, reiterating the need for constructive communication. He stated, “When the premier returns from his official visit to London, we will immediately conduct further discussions to finalise it,” according to Reuters and Channel News Asia.