Sabah takes 20% stake in oil fields off Kota Belud

Chief minister Hajiji Noor says the agreement with Petronas will help secure the state's rightful share in its energy resources.

State-owed SMJ Energy has taken a stake in a production sharing contract for four offshore oil fields in north Sabah. (AFP pic)

PETALING JAYA:

 Sabah is poised to secure a bigger share in oil and gas resources after a state-owned company acquired a 20% non-operating participating interest in an agreement with Petronas, chief minister Hajiji Noor said.

State-owned SMJ Energy acquired the interest in the North Sabah enhanced oil recovery production sharing contract for the exploration and production of oil from offshore fields in Sabah.

The agreement covers four oil fields, located in waters off Kota Belud. Petronas Carigali Sdn Bhd will retain a 30% stake, while SEA-Hibiscus Sdn Bhd will continue as the operator with a 50% interest.

“We’re not just increasing ownership, we’re securing Sabah’s rightful share in its energy future,” Hajiji said in a statement. With both the Samarang and North Sabah assets now part of its portfolio, SMJE will enable Sabah to lift up to seven crude oil cargoes annually.

SMJE bought a 50% stake in the Samarang production-sharing contract from Petronas Carigali in May 2023.

Hajiji said the new acquisition would solidify the state’s growing influence in the upstream energy landscape.

He said SMJE plans further equity participation with oil and gas resources in Sabah waters in line with a commercial collaboration agreement signed in December 2021. - FMT