KUALA LUMPUR — The High Court here has ruled in favour of Petroliam Nasional Berhad (Petronas) in its demand for a RM7.95 million bank guarantee from Petroleum Sarawak Berhad (Petros).
In delivering his decision, Judge Farids Gohim Abdullah held that Petros had failed to establish that Petronas’ call on the bank guarantee was either unconscionable or unlawful.
“The court finds that the plaintiff has not proven that the call on the bank guarantee was made in bad faith or in a manner that would justify the court’s intervention,” he was quoted saying by The Borneo Post.
On the constitutional issues raised by Petros, Farids Gohim explained that such matters were beyond the scope of the originating summons before him.
He added that questions concerning the constitutionality of the Petroleum Development Act 1974, a federal law and Sarawak’s Distribution of Gas Ordinance 2016 should properly be determined by the Federal Court. – February 25, 2026