KUALA LUMPUR, Sabah state-owned SMJ Energy Sdn Bhd recently announced the successful sale of its fifth crude oil cargo, securing an estimated revenue of RM120 million. This sale, derived from SMJ Energy’s 50%-owned Samarang production-sharing contract (PSC), brings the total revenue from the five cargos to RM700 million.
SMJ Energy acquired the 50% stake in the Samarang PSC from Petronas Carigali Sdn Bhd in May last year, with the first cargo sold to an international buyer in June of the same year. The crude oil entitlements were marketed through the Labuan Crude Oil Terminal (LCOT).
The company anticipates that these transactions will provide sustained revenue over the next 12 years, significantly enhancing the state’s economy. SMJ Energy’s role in the oil and gas sector has been bolstered by the Commercial Collaboration Agreement (CCA) with Petronas, signed on December 7, 2021. This agreement has enabled the state to secure greater revenue sharing and participation in the sector.
In the financial year ending December 31, 2023, SMJ Energy reported a profit after tax of RM259 million, a significant turnaround from a net loss of RM7 million during the previous year’s start-up phase. This profitability was largely driven by dividends from its wholly-owned subsidiary, Sabah International Petroleum Sdn Bhd (SIP), including a 10% interest in the Petronas LNG9 (PLNG9) investment and contributions from the SAMUR petrochemical plant and the Samarang PSC.
SMJ Energy remains committed to a prudent acquisition strategy, focusing on profitable oil and gas assets across various sectors. The company aims to invest in operations with strong cash flows managed by reputable operators adhering to environmental, social, and governance (ESG) standards.
for the record The Samarang field, which is located approximately 50km off the coast of Sabah is currently producing approximately 36,000 barrels of oil and gas equivalent per day.
The gas, at 134 million standard cubic feet per day, is part of the supply for customers in Kota Kinabalu and Labuan.
