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Petronas subsidiaries challenge RM120 million Sarawak gas penalties

Kuching High Court grants Petronas units leave for judicial review over RM120 million in state gas law fines, with hearing set for March.

KUCHING: The High Court here has granted five Petronas subsidiaries leave to seek a judicial review of RM120 million in penalties imposed by the Sarawak state government.

Judicial Commissioner Dean Wayne Daly ruled the applicants had raised an arguable case that merits a full substantive hearing.

The court, however, did not grant a stay on the imposition of the financial penalties during the proceedings.

The applicants are Petronas Carigali Sdn Bhd, Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd, Malaysia LNG Tiga Sdn Bhd and Petronas LNG 9 Sdn Bhd.

They are seeking to quash penalty notices issued under Section 7 of the state’s Distribution of Gas Ordinance 2016.

The companies were penalised for allegedly failing to apply for the required licences to operate in Sarawak.

Eight notices of RM15 million each were issued against them, totalling RM120 million.

The applicants’ legal team was led by lawyers Khoo Guan Huat and Alex Ngu Sze Shae.

The respondents were represented by State Legal Counsel Datuk Seri JC Fong and State Senior Counsel Mohd Adzrul Adzlan from the State Attorney General’s Chambers.

The court has fixed March 2 for case management.

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