Sabah state firm to acquire 25% equity in PETRONAS Chemicals' ammonia and urea plant

From left: PETRONAS Chemicals head of strategic planning and ventures Yaacob Salim, managing director and CEO Mohd Yusri Mohamed Yusof, PETRONAS Group SVP of project delivery and technology Datuk Bacho Pilong; Sabah State Local Government and Housing Minister and Finance Minister ll Datuk Seri Panglima Haji Masidi Manjun, Sabah State Secretary Datuk Seri Panglima Sr Haji Safar Untong, and SMJ CEO Dionysia Aloysius Kibat at the signing ceremony

KUALA LUMPUR: Sabah state-owned SMJ Sdn Bhd has acquired a 25% equity interest in PETRONAS Chemicals Fertiliser Sabah Sdn Bhd to give the former greater revenue sharing in the oil and gas industry in the state.

This comes following the recent acquisition of selected downstream gas pipeline assets and supply of natural gas contracts by Sabah Energy Corporation Sdn Bhd (SEC), which makes SEC the largest domestic supplier and transporter of natural gas in Sabah.

"These acquisitions signify the increased participation of Sabah state GLCs in the oil and gas industry," said SMJ CEO Dionysia Aloysius Kibat in a statement.

PETRONAS Chemicals Fertiliser Sabah, a wholly owned subsidiary of PCG, was established in 2011 to construct, own and operate an integrated ammonia and urea production complex in Sipitang Oil and Gas Industrial Park (SOGIP) in the municipal district of Sipitang, Sabah.

According to PETRONAS Chemicals managing director and CEO Mohd Yusri Mohamed Yusof, the divestment is a part of its effort to position itself as a preferred partner in shaping and delivering the aspiration of the group to sustain and grow the petrochemicals business in Sabah.

"We value the opportunity to further contribute to the development of Sabah. We welcome SMJ as our strategic partner, where they will be playing a key role in PC FSSB’s growth while providing added value to the state’s gas resources," he said.