KUCHING: The Kuching High Court has reaffirmed that the legal battle between state-owned Petroleum Sarawak Berhad (PETROS) and national oil giant PETRONAS will go ahead without further delay, following the dismissal of two applications filed by PETRONAS to adjourn or stay the proceedings.

According to a report by DayakDaily, Judicial Commissioner, Dato' Faridz Gohim Abdullah ruled that the hearing will proceed as planned on June 11, stating there were no compelling reasons to justify a stay or adjournment.

At the heart of the dispute is a RM7.95 million sum received under a bank guarantee which PETROS argues was wrongly claimed by PETRONAS.

The Sarawak-based company has labelled the demand for payment as both “unconscionable” and “unlawful” and is seeking a court order to prevent PETRONAS from using the funds.

The legal wrangling dates to October 2024, when PETRONAS called on the bank guarantee after issuing a demand for RM28.1 million from PETROS for gas supplied.

In response, PETROS initiated a lawsuit and sought an interim injunction to stop PETRONAS from drawing on the bank guarantee.

However, the injunction request was later rendered moot after Maybank Islamic Bhd proceeded with the payment to PETRONAS.

This is not the first attempt by PETRONAS to pause proceedings.

Back in April, the company’s bid to suspend the lawsuit was also thrown out, with the court finding that PETRONAS had failed to demonstrate any exceptional circumstances.

With the court making it clear that delays will no longer be entertained, attention now turns to the June 11 hearing at 9am, which is expected to provide further clarity on the increasingly tense legal contest between the state and federal energy entities.-UKASnews