(Bloomberg) – Petroliam Nasional Bhd. has filed a motion with Malaysia’s apex court to determine its right to operate in the nation’s largest state, Sarawak, threatening to extend a dispute over gas assets that has dragged on for over a year.

The court case, which Petronas announced in a statement on Monday, seeks legal clarity on Sarawak’s 2024 decision to grant full rights over its gas assets to its own oil company, Petroleum Sarawak Bhd., known as Petros. State-owned Petronas, which currently owns the disputed assets, has challenged the measure, citing concerns it may impact its LNG operations in the state.

Petronas operates one of the world’s largest liquefied natural gas terminals in Sarawak, which also holds most of Malaysia’s gas reserves. The state’s claims are part of a broader effort by the Sarawak administration to reclaim autonomy from Malaysia’s federal government. 

A previous proposal by the government offered to assign comprehensive gas rights to Petros, excluding LNG.

The negotiations have drawn the attention of Prime Minister Anwar Ibrahim, who announced that the matter was resolved in January last year. To date, the two companies are yet to sign a formal commercial agreement.