KOTA KINABALU: Sabah sold its latest crude oil cargo from its 50 per cent interest in the Samarang Production Sharing Contract (PSC) last Friday at an estimated sales revenue of RM170 million.
Since May 31, last year, SMJ Energy Sdn Bhd has completed the acquisition of 50 per cent participating interests in the Samarang PSC.
"It has allowed Sabah to sell its crude oil entitlements at Labuan Crude Oil Terminal 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 revenue for Sabah for the duration of the Samarang PSC over the next 12 years.
"The state continues to benefit from its entry into the oil & gas sector in Sabah through the signing of the commercial collaboration agreement (CCA) with Petroliam Nasional Bhd (Petronas) dated Dec 7, 2021," said a statement on the matter.
The CCA gives the state greater revenue sharing, say and participation in the oil and gas value chain in Sabah.
On Feb 15, last year, 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 April 25, last year, SMJE signed a sales & purchase agreement with Petronas Chemicals Group Bhd for the acquisition of 25 per cent participating interest in the Sabah Ammonia Urea petrochemical plant.
On May 31, last year, SMJE completed the acquisition of 50 per cent participating interest in the Samarang PSC. On Oct 25, last year, SMJE acquired 10 per cent participating interest in Petronas LNG9 through the acquisition of Sabah International Petroleum.
On Jan 23, 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 at the end of last year, which was 3.9 times over-subscribed and considered the most successful non-initial public offering fundraising exercise last year.
SMJE chairman Datuk Seri Masidi Manjun said the company will continue its prudent acquisition drive with focus on profitable oil and gas producing assets across the Upstream, LNG and Downstream/Petrochemicals sectors that have healthy cash flows operated by reputable operators with proven environmental, social and governance track records.
