by PRIYA VASU / pic by BLOOMBERG

PETROLIAM Nasional Bhd (Petronas) has instructed lawyers to intervene and cancel arrest warrants against its former officer in Sudan.

Sudan issued an arrest warrant for Petronas Sudan country manager, ostensibly as part of a corruption probe into deals made by former Sudan president.

Petronas, which is separately fighting to retain its assets that are being seized by Sudan, said a legal team representing its local unit, PetroDar Operating Co, is pursuing action to cancel the warrants.

“This matter is unrelated to the ongoing legal proceedings to reclaim Petronas’ rights over the land and the Petronas Complex in Khartoum, for which Petronas has filed a request for arbitration at the International Centre for Settlement of Dispute (ICSID).”

The oil company said it cannot comment on further as legal proceedings have begun.

Istanbul-based Daily Sabah news outlet quoted sources that Sudan’s transitional government issued the warrant against Petronas country manager following growing tensions after Sudan moved to seize Petronas’ assets.

The news portal said such a move would negatively affect Sudan’s future bilateral relations.

“Many other countries that have made a lot of investments in Sudan are also monitoring the situation closely. They are worried that they may be the next target of the transitional government,” it said.

Sources have said that other countries’ companies were being similarly targeted.

“Fu Hong Construction, a Chinese infrastructure firm, was alleged to have inflated the cost of projects. Similar actions were taken against the Pakistani-owned Grand Holiday Villa Ltd in Khartoum,” according to Daily Sabah.

Last week, the outlet reported that the Sudanese government had planned to confiscate assets belonging to Petronas in Sudan, alleging that they were acquired through illegal means during the rule of ousted leader Omar al-Bashir.

Petronas since then has led a request for arbitration with ICSID in the absence of positive development on Sudan’s transitional government’s decision to confiscate the company’s assets in Khartoum.

Petronas, in an email response shared to The Malaysian Reserve last week, stated that the rights over the land and the Petronas Sudan Complex in Khartoum were obtained in accordance with applicable laws.