KOTA KINABALU: Fledgling state-owned oil and gas company SMJ Energy Sdn Bhd (SMJE) has benefited greatly from the Commercial Collaboration Agreement (CCA) signed between Sabah and national oil company Petronas.
Since its inception in Dec 2021, SMJE has transformed into a RM5.1bil company, utilising a RM50mil grant from the state government.
This achievement is in addition to the government-linked company holding a 50% interest in the Samarang Production Sharing Contract (PSC), a 25% interest in the Samur petrochemical plant, and the successful acquisition of Sabah International Petroleum Sdn Bhd (SIP), among others.
Special adviser to SMJE, Datuk Seri Lim Haw Kuang, stated that these accomplishments would have been impossible to achieve so quickly without the CCA.
"It's an agreement between the Sabah government and Petronas, endorsed by the Federal Government; it's a very powerful agreement," he said during an SMJE media engagement on Friday (Nov 8).
The CCA, he explained, gave the company leverage in its business, especially in securing funding.
"If you asked me before (without the CCA), I'd be scratching my head. I went to Kuala Lumpur to talk to investment bankers and said ‘we are from SMJE, from Sabah’ and they said ‘who are you?’
"Now, all the investors can't wait to lend us a lot of money.
"So, what we've been doing is because we have the CCA advantage," Lim said.
Sabah and Petronas signed the landmark CCA on Dec 7, 2021, to jointly develop the oil and gas industry in the state.
With the CCA signed, the state government also announced the incorporation of SMJE, giving the state greater revenue sharing, greater say, and greater participation in the oil and gas value chain in Sabah.
Chief Minister Datuk Seri Hajiji Noor said the signing of the CCA marked a new era in Sabah's oil and gas industry, while the incorporation of SMJE is expected to help turn the state into a strong player in the industry.
On future undertakings, SMJE chief executive officer Dr Dionysia Kibat stated that the company will focus on investing in producing assets.
"We will make sure that we have a stable cash flow and also maximise whatever investment that we have at the moment," she said.
