The appellate court has allowed national oil company Petronas to admit further evidence in its appeal to set aside an interim injunction obtained by Shell MDS (Malaysia) Sdn Bhd pending the disposal of a related court case.
Earlier this year, Shell MDS was granted an injunction allowing the company to continue its operations without disruption until legal proceedings between Petronas and Sarawak-owned oil company, Petros, have been resolved.
Petros is suing to restrain Petronas from utilising RM7.95 million in funds received under a bank guarantee previously given by Petros for the supply of gas.
Last year, Shell MDS filed an interpleader summons to determine whether Petronas or Petros was the party entitled to payment for the supply of gas at its Bintulu facility.
Both Petronas and Petros were named as defendants in that suit.
Petronas asserts its entitlement to the payment, citing its role as the party responsible for the actual supply of gas.
Meanwhile, Petros claims it is entitled to the sum under Sarawak law which appointed the company as gas aggregator and supplier in the state.
Today, a three-member bench chaired by Justice Azimah Omar allowed Petronas and Petros to refer to a joint declaration signed by Prime Minister Anwar Ibrahim and Sarawak premier Abang Johari Openg at the injunction appeal.
Petronas was also allowed to admit evidence to prove that the sum presently owed by Shell MDS stands at RM523 million.
Petros, on the other hand, has been allowed to refer to its own invoice seeking payment of RM600 million from Shell MDS.
Also on the panel hearing the appeal were Justices Wong Kian Kheong and Ismail Brahim.
The court will hear the injunction appeal on Aug 11.
Lawyers Cyrus Das, Khoo Guan Huat and Azian Aziz appeared for Petronas, while Foo Joon Liang acted for Petros.
Christopher Leong and Janet Lim represented Shell MDS.
Earlier this year, Judicial Commissioner Arziah Apandi issued the injunction to enable Shell MDS to continue its operations without disruption while the legal proceedings were ongoing.
The Petroleum Development Act 1974 stipulates that Petronas holds exclusive rights over petroleum operations nationwide.
However, following a 2023 amendment, Sarawak’s Distribution of Gas Ordinance 2016 designates Petros as the sole gas aggregator in the state.
