In Malaysia, oil and gas rights are mainly controlled by the federal government through Petronas, which holds exclusive ownership under the Petroleum Development Act 1974. Oil-producing states like Sarawak and Sabah have challenged this arrangement, citing the Malaysia Agreement 1963 which they argue grants them more control over their natural resources. In response, Sarawak established its own state oil company, Petros, leading to ongoing tensions over revenue sharing, licensing, and jurisdiction. A joint-council would be a formal platform where oil-producing states and major oil companies (such as Petronas, Shell, and Petros) can negotiate rights, resolve disputes, and collaboratively manage resources to ensure fairer outcomes and better cooperation between federal and state interests.