KUALA LUMPUR: Sabah is clearing the way for a potential acquisition of 50 per cent
participating interest in the Samarang Production Sharing Contract (Samarang PSC)
following the signing of the Heads of Agreement (HoA) between SMJ Sdn. Bhd. (SMJSB) and PETRONAS Carigali Sdn. Bhd. (PCSB).
Witnessing the signing ceremony at the Malaysian Petroleum Club, PETRONAS Twin Towers here today, Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor congratulated both parties saying this is another significant development for Sabah.
Today’s Samarang PSC HoA signing came on the heels of last Wednesday’s Letter of
Understanding (LoU) deal on the back-in option arrangement for Block SB409
Production Sharing Contract giving the Sabah State – owned entity up to 20 per cent
participating interest upon completion of work commitment or commercial discovery, whichever is earlier. SMJSB had also signed a HoA with PETRONAS Chemicals Group Bhd (PCGB) for the acquisition of 25 per cent participating interest in the Sabah Ammonia Urea (SAMUR) petrochemical plant on 9 January,2023.
Signing on behalf of SMJSB was Chief Executive Officer, Dr Dionysia Aloysius Kibat
while PCSB was represented by Puan Hazliza Othman, Chief Executive Officer, PCSB.
Also present at the signing ceremony was Petronas President and Group Chief
Executive Officer, Datuk Tengku Muhammad Taufik, Senior Vice President Malaysia
Petroleum Management (MPM), Petronas, Mohamed Firouz Asnan, Sabah Finance
Minister, Datuk Seri Panglima Masidi Manjun and Sabah State Secretary, Datuk Seri
Panglima Sr Haji Safar Untong.
PCSB is the operator and currently holds 100 per cent of the participation under the
Samarang PSC since 1995 and has signed a supplementary PSC agreement with
PETRONAS in 2018 to extend the PSC operations until 31 December , 2035.
Both parties will work to finalise a farm-out agreement in which SMJSB will assume a
non-operating role in the Samarang PSC partnership.
The Samarang PSC has seven existing oil and gas producing fields namely Samarang, Samarang Kechil, Sumandak, Zuha Alab, Erb West and Kinarut and two gas receiving terminals in Kota Kinabalu and Labuan Island.
SMJSB would be receiving 50 per cent of partners’ entitlement from oil and gas
production of approximately 36 thousands barrels oil equivalent per day (kboe/d) and
will be a 50 per cent co-seller of natural gas to existing gas customers in Kota Kinabalu
and Labuan.
The signing of the HoA and the potential acquisition of the 50 per cent participating
interests in Samarang PSC would be the second significant development after the
signing of the Commercial Collaboration Agreement (CCA) between PETRONAS and
the Sabah State Government on 7 December 2021.-pr/BNN
