SMJ Energy Acquires 20 Pct Stake In North Sabah Production Sharing Contract

KOTA KINABALU, Nov 29 (Bernama) -- Sabah is poised to secure a bigger share in oil and gas resources following state-owned SMJ Energy's (SMJE) acquisition of a 20 per cent non-operating participating interest in the North Sabah enhanced oil recovery production sharing contract (EOR PSC).

In a statement last night, the Sabah Chief Minister's Department said the acquisition reflects the state's long-term strategy to build real value from its resources, made possible through the strong collaboration between the Sabah government and PETRONAS under the commercial collaboration agreement (CCA) signed on Dec 7, 2021.

"We are not just increasing ownership, we are securing Sabah's rightful share in its energy future. With both the Samarang and North Sabah assets now part of its portfolio, SMJE will enable Sabah to lift to seven crude oil cargoes annually," the statement said.

This development is expected to boost energy revenue and solidify the state's growing influence in the upstream energy landscape.

Looking ahead, SMJE plans further equity participation in Sabah’s oil and gas resources in alignment with the CCA, which is 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. On completion of the agreement, PETRONAS Carigali Sdn Bhd will retain a 30 per cent stake, while SEA-Hibiscus Sdn Bhd will continue as the operator with a 50 per cent interest.

-- BERNAMA