KUALA LUMPUR 27 March 2026 (The Capital Post) – A litigation funding firm has launched a legal challenge against national oil giant Petronas after a US$1.5 billion arbitration award in favour of the Terengganu royal heirs was overturned, igniting a fresh dispute over funding responsibilities and legal costs.
The dispute stems from a high‑profile commercial arbitration ruling in which the royal heirs were initially awarded US$1.5 billion in damages linked to a long‑running investment dispute with Petronas. However, the award was later scrapped following a successful challenge by Petronas before a Singapore court, raising questions about the role and obligations of the litigation funder who underwrote the original claim.
According to legal filings, the litigation finance company has now filed separate proceedings, contesting Petronas’ decision to overturn the award and seeking to recover costs incurred in backing the royal heirs’ claim. The funder asserts that its contractual rights were breached when the arbitration award was nullified, and that Petronas should bear responsibility for associated legal expenses.
-Advertisement-
Petronas has maintained that it acted within its legal rights and procedures in challenging the award, adding that the court’s decision set aside the arbitration on legitimate grounds. The company declined to comment further on the ongoing litigation but affirmed its commitment to defend against what it describes as unfounded claims by the funder.
Legal analysts said the case could set an important precedent in Asia’s emerging litigation funding market, particularly in disputes involving sovereign entities and state‑linked corporations. They noted that outcomes here may shape how funders structure contracts and allocate risk in future high‑value commercial disputes.-The Capital Post
