KUALA LUMPUR — PETRONAS Carigali Sdn. Bhd. (PETRONAS Carigali), a wholly owned subsidiary of PETRONAS, has signed a Farm Out Agreement (FOA) with SMJ Energy Sdn. Bhd. (SMJE), a company wholly-owned by the Sabah State Government for the assignment and transfer of PCSB’s 20 percent non-operating participating interest to SMJE in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (2011 NSEOR PSC).
Following the completion of the transaction and subject to the fulfilment of conditions precedent, PETRONAS Carigali’s non-operating participating interest will be revised to 30 percent, while SMJE will assume a 20 percent non-operating participating interest. SEA-Hibiscus Sdn. Bhd. will continue as the operator with a 50 percent participating interest.
The agreement was signed by PETRONAS Carigali’s Chief Executive Officer (CEO), Hazli Sham Kassim and SMJE’s CEO, Datuk Dr Dionysia Aloysius Kibat, in the presence of Sabah Chief Minister Datuk Seri Panglima Hj Hajiji Haji Noor and PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik.
“This agreement reflects the continued commitment of both PETRONAS Carigali and SMJE to pursue win-win partnerships that accelerate value creation and strengthen Malaysia’s upstream ecosystem. By building on mutual trust, shared objectives and constructive collaboration, the participation of SMJE in the 2011 NSEOR PSC demonstrates how aligned partnerships can unlock sustainable value and advance local capability development in Sabah,” said Hazli Sham during the signing ceremony.
The 2011 NSEOR PSC encompasses the Barton, South Furious, SF30, and St Joseph fields, located in shallow waters off the coast of Sabah, offshore of East Malaysia. In 2023, PETRONAS Carigali and SMJE entered into an FOA for PETRONAS Carigali’s 50 percent non-operating participating interest in the Samarang PSC.
Both companies are also partners in Blocks SB403 PSC, SB306A PSC and SB306B PSC. These agreements were entered into to progress the shared ambitions set out in the Commercial Collaboration Agreement (CCA) signed between the Sabah State Government and PETRONAS on 7 December 2021.
The partnership with SMJE extends beyond upstream operations, where SMJE holds a 25 percent equity interest in PETRONAS Chemicals Fertiliser Sabah and a 25 percent equity interest in PFLNG 3.
PETRONAS remains steadfast in strengthening its partnerships with the State and industry partners, while remaining committed to responsibly and sustainably developing Malaysia’s hydrocarbon resources. (Bernama)
