KOTA KINABALU: Sabah has officially acquired a 25% equity in PETRONAS’ Chemicals Fertiliser Sabah Sdn Bhd (PC FSSB), giving state-owned SMJ Sdn Bhd (SMJSB) a stake in PC FSSB's world-scale ammonia and urea production facilities.
This was made possible following the definitive agreements entered between SMJSB and PETRONAS Chemicals Group Berhad (PCG) on Tuesday (April 25), subsequent to the Heads of Agreement (HOA) signed earlier this year on Jan 9.
In lauding the move, Chief Minister Datuk Seri Hajiji Noor said this latest acquisition was part of the Commercial Collaboration Agreement (CCA) signed between the Sabah government and PETRONAS on Dec 7, 2021 to enhance collaboration between the two parties in developing the oil and gas industry in Sabah.
"The move envisioned under the Sabah Maju Jaya development plan was to give the state greater revenue sharing in the oil and gas industry and augurs well for its development and economic growth," he said in a statement here.
SMJSB’s chief executive officer Dr Dionysia Aloysius Kibat and PCG’s managing director and chief executive officer Mohd Yusri Mohamed Yusof signed for SMJSB and PCG respectively.
PC FSSB was established in 2011 to construct, own and operate an integrated ammonia and urea production complex at the Sipitang Oil and Gas Industrial Park (Sogip), located in southwestern Sabah.
PC FSSB’s facilities are designed to produce 1.9mil tonnes per annum of ammonia and urea.
It is the largest single-train ammonia and urea plant in South-East Asia and the third-largest urea plant in Asia Pacific.
Sabah has also made significant progress through its wholly-owned company, Sabah Energy Corporation (SEC), following the signing of the agreement with PETRONAS in October last year, giving SEC selected downstream gas pipeline assets and supply of natural gas contracts.
SMJSB had also finalised the acquisition of a 50% of non-operating participating interest in the Samarang Production Sharing Contract (PSC) through the Farm-Out Agreement (FOA) with PETRONAS Carigali Sdn Bhd (PCSB), a wholly-owned subsidiary of PETRONAS recently, on April 4.