KOTA KINABALU: SMJ Energy Sdn Bhd, the Sabah State Government’s wholly-owned energy investment vehicle, today issues this statement to categorically reinforce the importance of Sabah’s entry and ownership PETRONAS Chemicals Fertilizer Sabah Sdn Bhd (PCFSSB) better known as the Sabah Ammonia Urea (SAMUR) project.
Through SMJ Energy, the Sabah State Government owns a 25% equity interest in SAMUR, the company that owns and operates the SAMUR complex through a commercial collaboration agreement (CCA) with the national oil company.
Since the signing of the Share Purchase Agreement (SPA) on 25 April 2023 Sabah has continued to receive consistent financial returns from its strategic equity participation in SAMUR, with dividends flowing directly into state coffers through SMJ Energy for the benefit of Sabahans.
“To suggest that Sabah receives “less than what is due” from SAMUR is baseless as it disregards the State Government’s drive, favourable commercial terms and strategic decisions that successfully secured Sabah’s ownership in one of the region’s most important petrochemical assets,” SMJ Energy said.
SAMUR is today recognized as the largest single-train granular fertilizer facility in Southeast Asia and the third-largest fertilizer plant in the Asia-Pacific region. Built on Sabah soil and powered by Sabah gas, the project has positioned Sabah as an important player in the regional fertiliser and petrochemical industry.
The positive impact of SAMUR extends well beyond the plant itself. Sipitang Oil and Gas Industrial Park (SOGIP) with SAMUR as an anchor project, has attracted substantial committed investments and is generating significant employment opportunities for Sabahans across engineering, logistics, infrastructure, housing, hospitality, and technical services. This will multiply and increase more in time to come.
These developments represent long-term, place-based growth that is increasingly being felt across communities in Sipitang and the broader region.
SMJ Energy reaffirmed that the Sabah State Government will continue to pursue strategic investments and strengthen partnerships with PETRONAS and other industry players to ensure Sabah’s natural resources continue to generate long-term value and sustainable economic benefits for the people of Sabah.-pr/BNN
