He was commenting on reports that the assets were seized after a French arbitrator handed down an award which required Malaysia to pay descendants of the Sultan of Sulu compensation of at least RM62.59 billion.

Wan Junaidi said the government had never recognised the claim.

“Neither have we renounced our sovereignty,” the minister said in a statement.

Wan Junaidi said the French Court of Appeal had on July 12 granted a stay of the award, issued by arbitrator Gonzalo Stampa.

This means that the “final award” is not enforceable in any country until a decision is made on the application by Malaysia to cancel it, Wan Junaidi said.

Earlier this week, The Financial Times reported that the seizure was part of legal efforts launched in 2017 by the heirs claiming compensation for land in Sabah which they said had been leased by their ancestor to a British trading company in 1878.

The national oil company later confirmed that Petronas Azerbaijan (Shah Deniz) and Petronas South Caucasus were served with a “saisie-arret” (notice of seizure) on Monday.

Petronas said the seizure was “baseless” and was “working vigorously to defend its legal position in this matter”.

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