KOTA KINABALU: The Sabah Government, through its wholly owned entity SMJ Energy Sdn Bhd, continues its expansion in the oil and gas sector with the signing of two key agreements for Exploration Blocks SB306A and SB306B, located offshore Sabah’s east coast.
With these agreements, SMJ Energy has secured a 15% participating right in both blocks, comprising a 7.5% free carry right from INPEX and a 7.5% back-in right from PETRONAS Carigali Sdn Bhd (PCSB).
Under this arrangement, SMJ Energy assumes no exploration risks and retains the option to exercise its participation rights based on exploration success and other commercial considerations.
SB306A is operated by INPEX, which holds a 50% Participating Interest (PI), while PCSB holds 42.5% PI and SMJ Energy 7.5% PI. In SB306B, PCSB is the operator with a 50% PI, INPEX holds 42.5% PI, and SMJ Energy maintains a 7.5% PI.
The agreements were formalised at the Malaysia Bidding Round 2024 (MBR2024) Award Signing Ceremony held at the Kuala Lumpur Convention Centre on Monday (Feb 17). SMJ Energy CEO Dr Dionysia Kibat signed the Production Sharing Contracts (PSCs) alongside representatives from Petronas, PCSB, and INPEX.
This latest move marks another significant milestone for SMJ Energy, which has steadily expanded its footprint in Sabah’s oil and gas industry. The company’s first back-in right was signed on February 15, 2023, for Exploration Block SB409, followed by another on January 23, 2024, for Exploration Block SB403, both situated offshore Sabah’s west coast.
Beyond its latest acquisitions, SMJ Energy holds a 50% Participating Interest in the Samarang PSC Joint Venture, a 25% stake in the SAMUR petrochemical plant, and a 10% interest in PETRONAS LNG9 Sdn Bhd.
It also owns 100% of Sabah International Petroleum, now a debt-free entity generating strong cash flow through its Floating Production Storage and Offloading (FPSO) and Floating Storage Unit (FSO) operations.
Established on November 10, 2021, SMJ Energy declared total dividends of RM110mil for 2023 and 2024, reflecting its growing role in Sabah’s energy sector.
