KOTA KINABALU (Jan 9): The State of Sabah, through its wholly-owned company SMJ Sdn Bhd (SMJSB), and Petronas Chemicals Group Bhd (PCG) have signed the heads of agreement (HOA) for the acquisition of 25 per cent equity interest in Petronas Chemicals Fertiliser Sabah Sdn Bhd (PC FSSB).
The Agreement was signed by SMJSB chief executive officer, Dr Dionysia Aloysius Kibat and PCG managing director and chief executive officer, Mohd Yusri Mohamed Yusof in the presence of Datuk Seri Panglima Masidi Manjun, Sabah State Local Government and Housing Minister and Finance Minister ll and Petronas senior vice president, project delivery and technology Datuk Bacho Pilong.
“The acquisition of equity interest in PC FSSB will give Sabah State greater revenue sharing in the oil and gas industry in Sabah.
“This is in addition to the recent acquisition of selected downstream gas pipeline assets and supply of natural gas contracts by Sabah Energy Corporation Sdn Bhd (SEC), which makes SEC the largest domestic supplier and transporter of natural gas in Sabah.
“These acquisitions signify the increased participation of Sabah state GLCs in the oil and gas industry,” Dr Dionysia said.
Mohd Yusri added that the divestment was part of PCG’s strategic effort to position itself as a preferred partner in shaping and delivering the aspiration of PCG to sustain and grow the petrochemicals business in Sabah.
“We value the opportunity to further contribute to the development of Sabah,” he said. “We welcome SMJ as our strategic partner, where they will be playing a key role in PC FSSB’s growth while providing added value to the state’s gas resources.”
PC FSSB, a wholly owned subsidiary of PCG, was established in 2011 to construct, own and operate an integrated ammonia and urea production complex in Sipitang Oil and Gas Industrial Park (SOGIP) in the municipal district of Sipitang, Sabah.
It is approximately 150 kilometres south of Kota Kinabalu and 20 kilometres south of Sipitang.
PC FSSB has a world-scale ammonia and urea production facilities and designed to produce 1.9 million metric tonnes per annum of ammonia and urea. It is the largest single train ammonia and urea plant in Southeast Asia, and third largest urea plant in Asia Pacific. It occupies 211 acres of land in SOGIP, close to key growth markets in Asia Pacific.
PC FSSB is a key catalyst for the development of oil and gas industry in Sabah through SOGIP. It is the first fertiliser plant and the first world-class petrochemical plant built in Sabah.
Urea is used directly as fertiliser or feedstock for resins in plywood and adhesives, and other chemicals. Ammonia is mainly used as feedstock for urea, or industrial usage such as alkaline cleansers and refrigerant gas.