Petroliam Nasional Bhd (PETRONAS) and the Sabah state government expanded their collaboration in the oil and gas industry through via a head of agreement (HoA) signed between PETRONAS Carigali Sdn Bhd and Sabah’s SMJ Sdn Bhd (SMJBS).
PETRONAS, in a statement, said the HoA paves the way for SMJ’s potential acquisition of a 50% participation interest in the Samarang Production Sharing Contract (PSC), located about 50km offshore Sabah.
CEO Tengku Muhammad Taufik said: “PETRONAS shares the State’s aspirations for mutual prosperity even as we both pursue sustainable development. Having SMJSB on board as our upstream business partner underscores PETRONAS’ efforts to build a more inclusive environment for the oil and gas industry in Sabah, both offshore and onshore.”
“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.
Samarang PSC is a producing asset encompassing key oil and gas hubs in Sabah. It produces about 36,000 barrels of oil equivalent per day (boe/d) for both oil and gas, which covers customers in Kota Kinabalu and Labuan.
