SMJ Energy (SMJESB), a state-owned company, has entered into a second agreement to acquire a stake of up to 20% in an offshore oil exploration area in northern Sabah, according to a statement issued on Tuesday (Jan 23).
The letter of understanding for the production sharing contract was signed with PETRONAS Carigali (PCSB) and E&P Malaysia Venture (EPMV). This deal offers the state oil and gas company up to 20% participating interest in Block SB403 PSC through a back-in option, exercisable upon completion of work commitment or commercial discovery.
Under the agreement, SMJESB has the opportunity to access and review the information and data obtained from exploration work before deciding to accept the option, allowing the company to effectively manage exploration risk and minimize it.
The Block SB403 area, awarded to PCSB and EPMV by PETRONAS during the 2023 Malaysia Bidding Round (MBR), covers a 10,256sq-km area located north of Sabah.
SMJESB’s executive director for upstream, Albert Lo, along with PCSB’s CEO Hasliza Othman and EPMV’s head Aliff Anwar, signed the letter at the Kuala Lumpur Convention Centre.
This is the second exploration deal between SMJESB, PCSB, and EPMV through the same option. The first back-in option was signed on Feb 15 last year for Block SB409 PSC, another offshore area of Sabah covering an area of 14,556sq-km.
Furthermore, SMJESB also holds a 50% stake in the Samarang PSC, a 25% share in the Sabah Ammonia and Urea Plant, and a 10% stake in Petronas LNG9, which operates an LNG plant within the Bintulu LNG complex.
