KUCHING, Feb 23: Petroliam Nasional Berhad (Petronas) and the Sabah government continue to expand collaboration in the upstream oil and gas industry at the Semarang field, located approximately 50km off Sabah’s shore.
According to a media release, the partnership was sealed through a Heads-of-Agreement (HOA) signed yesterday (Feb 22) between Petronas Carigali Sdn Bhd (PCSB), a wholly-owned subsidiary of Petronas and SMJ Sdn Bhd (SMJSB), a company wholly-owned by Sabah.
The agreement was signed between PCSB’s chief executive officer (CEO) Hasliza Othman and SMJSB CEO Dr Dionysia Aloysius Kibat, witnessed by Petronas president and Group CEO Datuk Tengku Muhammad Taufik, Sabah Chief Minister Datuk Seri Hajiji Noor and Sabah Finance Minister Datuk Seri Masidi Manjun.
The HOA paves the way for SMJSB’s potential acquisition of a 50 per cent participation interest in the Samarang Production Sharing Contract (PSC) which is a producing asset encompassing key oil and gas hubs in Sabah.
Currently, the Semarang field is producing approximately 36,000 barrels of oil equivalent per day (boe/d) for both oil and gas. The gas is delivered to customers in Kota Kinabalu and Labuan.
Tengku Taufik said having SMJSB on board as its upstream business partner underscores Petronas’ efforts to build a more inclusive environment for the oil and gas industry in Sabah, both offshore and onshore.
“Petronas shares Sabah’s aspirations for mutual prosperity even as we both pursue sustainable development.
“SMJBS’s potential participation in the Samarang PSC also demonstrates Petronas’ continued commitment under the Commercial Collaboration Agreement to develop and unlock the full potential of Sabah’s oil and gas industry,” he added in a statement issued today.
Earlier this year, Petronas Chemicals Group Berhad signed a HOA which welcomed SMJSB as its partner to Petronas Chemicals Fertiliser Sabah Sdn Bhd with a 25 per cent of equity interest in Petronas Chemicals Fertiliser Sabah, as part of its efforts in providing for greater revenue sharing with the Sabah government-link company.
On Feb 15, 2023, PCSB and E&P Malaysia Venture Sdn Bhd also signed a Letter of Understanding with SMJSB on the back-in option arrangement on the Block SB409 PSC, giving the Sabah government up to 20 per cent participating interest upon completion of work commitment or commercial discovery, whichever is earlier. — DayakDaily
