Dr Dionysia (middle) and Malaysia Petroleum Management Senior Vice President Datuk Ir Bacho Pilong with representatives from SMJ Energy, PETRONAS, PCSB and INPEX after the signing ceremony.
KOTA KINABALU: The Sabah Government, through its wholly owned company SMJ Energy Sdn Bhd, continues its strong momentum with the signing of two agreements involving Exploration Blocks SB306A and SB306B, located offshore on Sabah’s East Coast.
With these agreements, SMJ Energy has secured a 15 per cent participating right in both blocks, comprising a 7.5 per cent free carry interest from INPEX and a 7.5 per cent back-in right from PETRONAS Carigali Sdn Bhd.
SB306A is operated by INPEX, which holds a 50 per cent participating interest (PI), while PETRONAS Carigali Sdn Bhd (PCSB) holds 42.5 per cent PI, and SMJ Energy holds 7.5 per cent PI. For SB306B, PCSB serves as the operator with a 50 per cent PI, INPEX holds 42.5 per cent PI, and SMJ Energy holds 7.5 per cent PI.
Under the free carry and back-in arrangement, SMJ Energy does not bear exploration risks and will decide whether to exercise its participation rights based on exploration success and other commercial considerations.
At the Malaysia Bidding Round 2024 (MBR2024) Award Signing Ceremony, held at the Kuala Lumpur Convention Centre yesterday (Feb 17), SMJ Energy CEO Dr Dionysia Kibat signed the Production Sharing Contracts for Blocks SB306A and SB306B, alongside representatives from PETRONAS, PCSB, and INPEX.
The event marks SMJ Energy’s latest exploration deals in Sabah. The first back-in right was signed on Feb 15, 2023, for Exploration Block SB409, and the second back-in right was signed on Jan 23, 2024, for Exploration Block SB403, both located offshore on Sabah’s West Coast.
SMJ Energy also holds a 50 per cent participating interest in the Samarang PSC Joint Venture, a 25 per cent interest in the SAMUR petrochemical plant, and a 10 per cent interest in PETRONAS LNG9 Sdn Bhd. Additionally, it owns 100 per cent of Sabah International Petroleum, which is now debt-free and generating strong cash flow from its FPSO (Floating Production Storage and Offloading) and FSO (Floating Storage Unit) operations.
SMJ Energy was established on Nov 10, 2021, and declared total dividends of RM110 million for 2023 and 2024.
