KOTA KINABALU (April 4): Sabah formalised the acquisition of 50 per cent participating interest in the Samarang PSC by entering into definite agreements with Petronas Carigali Sdn Bhd (PCSB) on Tuesday.
This followed the Heads of Agreements (HoA) signing between state-owned SMJ Sdn Bhd (SMJSB) and PCSB witnessed by Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor in Kuala Lumpur on Feb 22, this year.
Both parties have also agreed on the terms in the Joint Operating Agreement (JOA).
PCSB will continue to be the operator for Samarang PSC with SMJSB as non-operating partner.
The Chief Minister commended all parties for expediting the signing of this deal, adding that Sabah will pursue further deals and participation in the state’s oil and gas industry.
The Samarang PSC has seven existing oil and gas producing fields namely Samarang, Samarang Kechil, Sumandak, Zuhal, Alab, Erb West and Kinarut, and two gas receiving terminals in Kota Kinabalu and Labuan Island. PCSB is the operator and currently holds 100 per cent of the participating interest 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.
SMJSB would be receiving 50 per cent of partners’ entitlement from oil and gas production of approximately 36 thousand barrels oil equivalent per day (kboe/d).
The conclusion of this acquisition is the second significant development between PCSB and SMJSB following the Commercial Collaborative Agreement (CCA) signed between Petronas and the Sabah State Government on 7 December 2021.
On 9 January 2023, SMJSB had signed a HoA with Petronas Chemicals Group Bhd (PCGB) for the acquisition of 25 per cent interest in the Sabah Ammonia Urea (SAMUR) petrochemical plant.
SMJSB had also signed a 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 the work commitment or commercial discovery, whichever is earlier.