KOTA KINABALU: Sabah has raked in revenue in excess of RM100mil after selling its sixth crude oil cargo from the Labuan Crude Oil Terminal (LCOT).
SMJ Energy Sdn Bhd (SMJE) said the crude oil cargo of about 300,000 barrels represented SMJE’s entitlement from its 50% participating interest in the Samarang Production Sharing Contract (PSC), which was bought in May 2023.
“To date, Sabah has sold six crude oil cargoes, generating nearly RM800mil in cumulative sales revenue,” said the state-owned company, in a statement on Saturday (Oct 12).
“These transactions are expected to provide sustained revenue over the next 12 years, significantly bolstering the state's economy,” it added.
SMJE said the state continues to benefit from its entry into the oil and gas sector in Sabah through the signing of the Commercial Collaboration Agreement (CCA) with Petronas on Dec 7, 2021.
The CCA, the company said, gives the state greater revenue sharing, greater say and greater participation in the oil and gas value chain in Sabah.
Sabah formalised the acquisition of 50% participation interest in the Samarang PSC with the signing of the joint operating agreement (JOA) on April 4 last year.
The agreement with Petronas Carigali Sdn Bhd (PCSB) was a follow-up to the heads of agreement (HOA) signed earlier on Feb 22 of the same year between SMJE and PCSB that was witnessed by Chief Minister Datuk Seri Hajiji Noor in Kuala Lumpur.
Both parties also agreed that PCSB will continue as the operator for Samarang PSC with SMJE as a non-operating partner.
Under the agreement, SMJE would be receiving 50% of its partners' entitlement from oil and gas production of approximately 36,000 barrels of oil equivalent per day (boe/d).
The Samarang PSC has seven existing oil and gas-producing fields namely Samarang, Samarang Kechil, Sumandak, Zuhal, Alab, Erb West and Kinarut, and two gas-receiving terminals in Kota Kinabalu and Labuan Island.
The Samarang PSC acquisition was the second significant development between PCSB and SMJE following the CCA signed between Petronas and the Sabah government on Dec 7, 2021.
