Masidi (centre) witnessing the Heads of Agreement signing between SMJ Sdn Bhd represented by Dr Dionysia (seated second right) and Executive Director, Legal and Commercial Datuk Brenndon Keith Soh (seated right) and Petronas Chemicals Group represented by Mohd Yusri (seated second left) and Head of Strategic Planning & Ventures Yaacob Salim (seated left). Also on hand State Secretary Datuk Seri Sr Safar Untong (standing second right) and Bacho (standing second left).
KOTA KINABALU: Sabah, through its wholly-owned company SMJ Sdn Bhd (SMJSB), and PETRONAS Chemicals Group Berhad (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 Ir. Mohd Yusri Mohamed Yusof, in the presence of Local Government and Housing Minister cum Second Finance Minister Datuk Seri Masidi Manjun and PETRONAS Senior Vice President, Project Delivery & Technology, Datuk Bacho Pilong.
“The acquisition of equity interest in PC FSSB will give Sabah greater revenue sharing in the oil and gas industry in Sabah,” said Dr Dionysia.
“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,” she added.
Dr Dionysia (right) exchanging document with Mohd Yusri (left) witnessed by Masidi (centre).
Ir. Mohd Yusri said the divestment is 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. 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,” he said.
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.
SMJ Sdn Bhd is a state oil and gas company established by the Sabah Government to oversee the state’s overall interest in oil and gas developments for the best interest of the state, and to secure greater revenue sharing, greater say and greater participation in the oil and gas value chain in the state.
PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world-class production sites in Malaysia, Asia- Pacific, Europe and North America.
With a total combined production capacity of 15.4 million metric tons per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol, other basic chemicals, derivative products and specialty chemicals.
Listed on Bursa Malaysia with more than three decades of experience in the chemicals industry, PCG is established as part of the PETRONAS Group to maximise value from Malaysia’s natural gas resources.
PCG is committed to ensuring that its business practices are in line with globally recognised standards for Economic, Environment, Social & Governance (EESG) practices. It is currently listed in the FTSE4Good Bursa Malaysia (F4GBM) Index and the Dow Jones SustainabilityTM World Index.
