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Zaid questions Petronas assurances as Sarawak oil dispute deepens

Former law minister Datuk Zaid Ibrahim has cast doubt on reassurances from Sarawak's premier regarding the state's oil and gas resources, amid mounting tensions over control of petroleum assets.

LSN Malaysia · 4 October 2026

KUALA LUMPUR, Oct 4 — Former law minister Datuk Zaid Ibrahim has questioned the credibility of assurances given by Sarawak Premier Abang Johari Openg concerning the state's oil and gas sector, suggesting that pledges to protect Sarawak's interests ring hollow in light of ongoing disputes with Petronas.

Zaid's comments reflect growing concerns about the clarity and enforceability of agreements between the Sarawak state government and the national oil company, particularly regarding resource management and revenue allocation. The dispute centers on longstanding questions about Sarawak's constitutional rights to its petroleum resources and the extent of Petronas's authority in state waters.

The former minister's remarks highlight the persistent tension between federal and state-level interests in Malaysia's energy sector. Sarawak has repeatedly sought greater autonomy over its hydrocarbon assets, arguing that the state deserves enhanced control and financial benefits from its oil and gas reserves.

This latest challenge to Petronas underscores the unresolved nature of Malaysia's federal-state resource governance, with Sarawak's leadership continuing to press for more favorable terms in its relationship with the national petroleum authority. The dispute remains a significant point of contention in Malaysian politics.