KOTA KINABALU: Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said Sabah is poised to secure a bigger share in oil and gas resources following state-owned SMJ Energy’s (SMJE) acquisition of a 20 percent non-operating participating interest in the North Sabah Enhanced Oil Recovery Production Sharing Contract (EOR PSC).
“We’re not just increasing ownership, we’re securing Sabah’s rightful share in its energy future.
“This acquisition reflects our long-term strategy to build real value from our resources, made possible through the strong collaboration between the State Government and PETRONAS under the Commercial Collaboration Agreement (CCA) signed on December 7, 2021,” he said.
With both the Samarang and North Sabah assets now part of its portfolio, SMJE will enable Sabah to lift up to seven crude oil cargoes annually.
This development is expected to not only boost energy revenue but also solidify the state’s growing influence in the upstream energy landscape.
Looking ahead, the Chief Minister said SMJE plans further equity participation with oil and gas resources in Sabah waters in alignment with the CCA.
These initiatives, he added are designed to deliver greater say, greater participation, and greater revenue sharing from offshore oil and gas activities directly to Sabah.
The North Sabah EOR PSC covers four oil fields, located in shallow waters off Kota Belud. Upon completion of the agreement, PCSB will retain a 30 percent stake, while SEA-Hibiscus Sdn Bhd will continue as the operator with a 50 percent interest.-pr/BNN
