Kibat (second right) exchanging documents with Mohd Yusri, as Masidi (centre) looks on.
KOTA KINABALU: Sabah has signed an agreement to acquire a 25% stake in PETRONAS Chemicals Fertiliser Sabah Sdn Bhd (PC FSSB).
The state government, through its wholly-owned company SMJ Sdn Bhd (SMJSB), and PETRONAS Chemicals Group Berhad (PCG) signed a Heads of Agreement (HOA) for the acquisition of 25% equity interest in PC FSSB here on Monday (Jan 9).
“The acquisition of equity interest in PC FSSB will give the state greater revenue sharing in the oil and gas industry in Sabah,” said SMJSB chief executive officer (CEO) Dr Dionysia Aloysius Kibat.
“This is in addition to 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 government-linked companies (GLCs) in the oil and gas industry,” she added.
The agreement was signed by Kibat and PCG managing director and CEO Mohd Yusri Mohamed Yusof.
Sabah Local Government and Housing Minister Datuk Seri Masidi Manjun and PETRONAS senior vice president, Project Delivery and Technology, Datuk Bacho Pilong were also present at the signing.
Mohd Yusri said the divestment was part of PCG’s strategic effort to position itself as a preferred partner in shaping and delivering the aspirations of the company 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.
PC FSSB, a wholly-owned subsidiary of PCG, was established in 2011 to construct, own and operate an integrated ammonia and urea production complex in the Sipitang Oil and Gas Industrial Park (Sogip).
It is located 150km south-west of Kota Kinabalu and 20km south of Sipitang.
PC FSSB has world-standard ammonia and urea production facilities designed to produce 1.9 million metric tonnes of ammonia and urea per year.
It is the largest single-train ammonia and urea plant in South-East Asia, and the third largest urea plant in the Asia-Pacific.
It occupies 85.4ha (211 acres) of land in Sogip, close to key growth markets in the Asia Pacific region.
