KOTA KINABALU: Sabah sold its latest crude oil cargo from its 50 per cent interest in the Samarang Production Sharing Contract (PSC) last Friday (April 19) at an estimated sales revenue of RM170 million.
The completion of the acquisition of 50 per cent participating interests by SMJ Energy Sdn Bhd (SMJE) in the Samarang PSC since 31 May 2023 has allowed Sabah to sell its crude oil entitlements at Labuan Crude Oil Terminal (LCOT) to an international crude oil buyer for a total of four cargoes so far with an estimated cumulative sales revenue just under RM580 million to date.
The sold cargoes and subsequent sales are projected to bring in continuous revenues for Sabah for the duration of the Samarang PSC over the next 12 years.
Sabah continues to benefit from its entry into the oil and gas sector in the state through the signing of the Commercial Collaboration Agreement (CCA) with PETRONAS dated December 7 2021. The CCA gives the state greater revenue sharing, greater say and greater participation in the oil and gas value chain in Sabah.
On April 25, 2023, SMJE signed a Sales & Purchase Agreement(SPA) with PETRONAS Chemicals Group Bhd (PCGB) for the acquisition of 25 per cent participating interest in the Sabah Ammonia Urea (SAMUR) petrochemical plant. On February 15, 2023, SMJE signed a Letter of Understanding (LoU) on the back-in option arrangement for Block SB409 PSC giving SMJE the right to acquire up to 20 per cent participating interest upon completion of the work commitment or commercial discovery, whichever is earlier. On May 31, 2023, SMJE completed the acquisition of 50 per cent participating interest in the Samarang PSC.
On October 25, 2023, SMJE acquired 10 percent participating interest in Petronas LNG9 through the acquisition of Sabah International Petroleum (SIP). On January 23, 2024, SMJE signed a LoU for another back-in option arrangement for Block SB403 PSC, similarly giving SMJE the right to acquire up to 20 per cent participating interest under similar terms.
SMJE declared its maiden dividend of RM50 million to the Sabah state end of last year. SMJE also successfully completed a AAA-rated sukuk fundraising of RM900 million end of last year, which was 3.9 times over-subscribed and was considered the most successful non-IPO fundraising exercise in 2023.
Finance Minister Datuk Seri Masidi Manjun, who is also Chairman of SMJE said SMJE will continue its prudent acquisition drive with focus predominantly on profitable oil and gas producing assets across the Upstream, LNG and Downstream/Petrochemicals sectors with healthy cash flows operated by reputable operators with proven ESG track records.
