When the Federal Government made a Proclamation of Emergency in response to the unrest, it unilaterally limited the territorial waters of the Borneo states to three nautical miles.

[7][8] In 1974, the Federal Government transferred its territorial waters ownership to Petroliam Nasional Berhad (PETRONAS) through the enactment of the Petroleum Development Act 1974.

[9] Among others, the act allowed PETRONAS to regulate the oil and gas industry in Malaysia, and explore mineral resources in both the states.

[11] Zainnal Ajamain, a political analyst, claimed that the payment of oil royalty to Sarawak is limited to 10 percent according to the Federal Constitution.

[24] On 4 July 2017, Abang Johari announced[25] that the petroleum company would be 100 percent owned by Sarawak and will work with Petronas on an equal basis.

[31] Abang Johari also claimed that under the Item 2(c) of the State List, Ninth Schedule of the Federal Constitution, Petros is able to exercise its rights on Sarawak waters.

[37] On 4 June 2018, Petronas filed a suit in the Federal Court of Malaysia in order to assert its position as the exclusive owner of Malaysian oil resources (including Sarawak) and the 1974 Petroleum Development Act is still valid.

[43] In September 2019, prime minister Mahathir stated that payment of 20% oil royalty is not possible for Sabah and Sarawak because it may compromise financial status of Petronas.

[45] In February 2020, Petros took full control of natural gas supply, sales, and distribution network in the state from Petronas.

Besides, both parties also agreed that the Petroleum Development Act 1974 is valid with Petronas as the sole regulator of oil and gas industry in Malaysia.

[48] Wan Zulkiflee, chief executive of Petronas quit his post in June 2020, apparently dissatisfied with the outcome of the sales tax issue.

[50] In year 2020, Petros started to distribute liquefied petroleum gas (LPG) to 1,500 business and 2,500 households in Miri and Bintulu.

[65] In January 2018, PETROS signed a memorandum of understanding (MOU) with Petrotel Energy Oman LLC to "explore the possibility of co-operation to develop the downstream sector of oil and gas industries in Sarawak”.

[61][66] In December 2022, Petros collaborate with South Korea's Posco Group on the development of carbon capture and storage (CCS) business.