Kuala Lampur, Oct. 10 -- Petronas's dividend to the federal government has plunged from RM32 billion to RM20 billion this year - a near 40 per cent fall that has unsettled Malaysia's fiscal balance. While weaker oil prices and global market conditions explain part of the decline, another factor is home-grown: the unresolved and increasingly fractious relationship between Petronas and Sarawak's state-owned Petros.

Despite a joint declaration in May that was meant to end their dispute, both sides are back in court. The lawsuits never truly stopped - a clear sign that the accord was high on symbolism but low on sincerity.

A fragile peace built on contradictions

When Putrajaya and Kuching signed the joint declaration on May 21, 2025, it wa...