<figure id="attachment_3011237" aria-describedby="caption-attachment-3011237" style="width: 1600px" class="wp-caption aligncenter"><img loading="lazy" class="wp-image-3011237 size-full" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/03/7ee3dc1e-shahril-hamdan-ks-ss-170325.webp" alt="shahril hamdan" width="1600" height="1000" /><figcaption id="caption-attachment-3011237" class="wp-caption-text">Shahril Hamdan said not resolving the tensions between Petronas and Petros may result in a lose-lose scenario.</figcaption></figure>
PETALING JAYA: Former Umno leader Shahril Hamdan has urged Petronas and its Sarawak counterpart Petros to resolve their dispute over gas distribution with sincerity in their commercial discussions.
He urged them to have direct discussions, to avoid dragging the federal and state governments into a fight that could otherwise be settled across the table.
“Petronas and Petros must talk first. There’s no need to escalate things unless absolutely necessary. A win-win outcome is still possible,” Shahril said in the Keluar Sekejap podcast with Khairy Jamaluddin.
Failure to resolve the tensions may result in a lose-lose scenario, affecting investors and the country’s image as a stable oil and gas player.
Amid the tussle between Petronas and Petros, the US energy giant ConocoPhillips is reported to have pulled out of a RM13.7 billion deepwater oil project off Sarawak.
The legal uncertainties between Petronas and Petros contributed to the decision, according to analysts, while ConocoPhillips blamed weak oil prices.
Sarawak claims authority over gas distribution under its Distribution of Gas Ordinance 2016, while Petronas maintains its position under the federal Petroleum Development Act 1974.
Shahril said the two laws “can be read harmoniously” if both sides act in good faith. Khairy said the situation reflects broader issues of federal-state relations and warned that prolonged disputes could bring down investor confidence and disrupt national energy policy.
The federal government previously said Petronas and Sarawak had reached an understanding to allow both legal frameworks to coexist.

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