PETRONAS yesterday vowed to fight any claims on its assets by the heirs of the Sultan of Sulu, who are seeking US$15 billion (RM69.5 billion) in compensation, according to a Reuters report.

“Petronas maintains its view that any purported action targeting Petronas in relation to this case is baseless and Petronas will continue to defend its legal position,” the company said to Reuters.

Previously, Minister in the Prime Minister’s Department (Parliament and Law) Wan Junaidi Tuanku Jaafar said the government would contest any such move.

“Malaysia will spare no expense defending its sovereignty and its assets abroad wherever they may be situated,” Wan Junaidi said.

The heirs of the former Sulu sultanate yesterday asked a Dutch court for permission to seize Malaysian assets in the Netherlands.

To this, Wan Junaidi said it was nothing more than another opportunistic act perpetrated in breach and contravention of international arbitration rules and norms under the New York Convention and the United Nations Commission on International Trade Law.

He said Malaysia’s main position is that the impugned award rendered in Paris in February was obtained irregularly and in circumstances of illegality.

Various Malaysian companies, including Petronas-linked assets, were mentioned in the media reports.

He said Petronas’ assets are not assets belonging to the Malaysian government and, therefore, it would be an abuse of the process of any court to seek enforcement against such assets.

“Additionally, no award should be enforced where doing so, its unjust action will cause severe repercussions to the stability of another country.

“The award granted by the arbitrator was illegal and highly abnormal on many different grounds,” he said, giving the moving of the seat of arbitration from Spain to France after the Superior Court of Madrid had declared as nullities both the appointment of the arbitrator and the subsequent arbitral proceedings.

He said moving the court was in breach of Spanish arbitration law. – October 2, 2022.