20pc stake in North Sabah PSC: Sabah’s second major upstream investment​

NEWS & MEDIA

20pc stake in North Sabah PSC: Sabah’s second major upstream investment​

10 February 2026

Kuala Lumpur: Sabah, through SMJ Energy Sdn Bhd (SMJE), has acquired 20 per cent participating interest in the North Sabah Enhanced Oil Recovery Production Sharing Contract (EOR PSC) following the signing of the Farm-Out Agreement (FOA) with Petronas Carigali Sdn Bhd (PCSB) at Kuala Lumpur Convention Centre (KLCC), Monday.

Chief Minister Datuk Seri Hajiji Noor said this latest achievement reflects the State Government’s long-term strategy to strengthen Sabah’s energy sector through high-quality investments and close collaboration with Petronas.

“With opportunities now expanding across the State from the West to the East Coast, we welcome reputable investors to partner with us in ensuring sustainable and lasting benefits for the people of Sabah,” he said after witnessing the exchange of documents in conjunction with the Commemoration of Sabah and Petronas Collaboration.

The acquisition, effective Jan 1, 2026, follows the Heads of Agreement (HoA) signed between SMJE and PCSB in November 2025, paving the way for today’s final transaction.

It is SMJE’s second upstream acquisition since entering the Samarang PSC in April 2023, which further solidifies its role as a strategic player in Sabah’s oil and gas landscape.

The North Sabah EOR PSC includes four producing oil fields located in shallow waters approximately 70 metres deep offshore Kota Belud.

The asset comprises 20 offshore platforms connected by a 143km, 24-inch pipeline that evacuates crude oil to the Labuan Crude Oil Terminal (LCOT).

Following the transaction, SMJE will assume a 20pc non-operating partner interest, while Sea Hibiscus Sdn Bhd continues as operator with a 50pc participating interest and PCSB retains 30pc.

The move is expected to raise SMJE’s crude entitlement, increasing its cargo lifting from 4.7 cargoes in 2025 to 7.0 cargoes in 2026, enhancing revenue streams and supply reliability for Sabah.

Deputy Chief Minister II cum Finance Minister Datuk Seri Masidi Manjun, who is also SMJE Chairman, said North Sabah is a strategic producing asset and SMJE’s participation signals a maturing role for the State in upstream activities.

“This move secures long-term value, builds commercial capability and ensures more benefits flow directly to the people of Sabah,” he said.

Under the current Sabah administration, he said SMJE continues to accelerate value creation through strategic partnerships, local participation and responsible resource management.

Earlier, an exchange of documents took place for the HoA between Petronas and Sabah Energy Corporation (SEC) for the Mutiara Cluster. This HoA establishes the framework for a future Gas Sales Agreement (GSA) to facilitate the cluster’s development, targeted for the first quarter of 2029.

Additionally, documents were exchanged for the Permata Cluster PSC between Petronas and Bridge Petroleum Limited, a newly-appointed Petroleum Arrangement Contractor (PAC).

The Permata Cluster is located offshore Sabah.

Hajiji (second left) and Petronas President and Group Chief Executive Officer Tan Sri Tengku Muhammad Taufik (second right) witnessing the exchange of documents for the 2011 Farm-Out Agreement (FOA) under the North Sabah EOR PSC between Petronas Carigali Sdn Bhd, represented by its Chief Executive Officer Hazli Sham Kassim and SMJE represented by its Chief Executive Officer Datuk Dr Dionysia Kibat.

Source: Daily Express Malaysia

Sabah strikes deal with PETRONAS to buy 20% non-operating interest in another oil block

NEWS & MEDIA

Sabah strikes deal with PETRONAS to buy 20% non-operating interest in another oil block

9 February 2026

KUALA LUMPUR (Feb 9): The Sabah state government has completed yet another major upstream oil and gas investment. Sabah state-owned SMJ Energy Sdn Bhd is acquiring a 20% non-operating interest in an oil production-sharing contract (PSC) covering four fields off its coast.

SMJ Energy Sdn Bhd acquired the stake via a farm-out agreement with PETRONAS Carigali Sdn Bhd, PETRONAS’ exploration and production arm, according to the national oil firm’s statement on Monday.

PETRONAS Carigali’s non-operating stake in the North Sabah Enhanced Oil Recovery Production Sharing Contract (NSEOR PSC) will be reduced to 30%, while operator SEA-Hibiscus Sdn Bhd — which manages production’s day-to-day operations — will retain 50%.

The value of the 20% non-operating stake acquired in the PSC was not disclosed in the statement.

The NSEOR PSC comprises the Barton, South Furious, SF30, and St Joseph fields, located in shallow waters off the coast of Sabah. It includes 20 offshore platforms connected by a 143km pipeline that transports crude oil to the Labuan Crude Oil Terminal.

Sabah’s modus operandi of acquiring non-operating interest in PSCs is anchored on its commercial collaboration agreement with PETRONAS that was signed in December 2021.

Sabah, which produces the most crude oil in the country, has chosen a different path from its neighbouring state Sarawak in terms of managing the state’s hydrocarbon resources. Sabah agreed to allow PETRONAS to undertake exploration and development works. The state will later buy a non-operating stake once PETRONAS strikes oil. SMJ Energy is only keen on producing assets.

Meanwhile, Sarawak, via state-owned entity Petros, intends to claim full control and operatorship of targeted projects under its commercial settlement agreement with PETRONAS.

Prior to the latest deal, SMJ Energy acquired a 50% non-operating interest from PETRONAS Carigali in the Samarang PSC in April 2023.

SMJ Energy and PETRONAS Carigali are also partners for several other PSCs in the state’s waters. According to SMJ Energy’s website, the company has “back-in options” to acquire participating interests in the contracts.

Beyond upstream operations, SMJ Energy’s partnership with PETRONAS also extends to its 25% stake in PETRONAS Chemicals Fertiliser Sabah and a 25% stake in floating liquefied natural gas facility project, PFLNG 3.

PETRONAS Carigali Sdn Bhd CEO Hazli Sham (third from right) exchanging documents with SMJ Energy Sdn Bhd CEO Datuk Dr Dionysia Aloysius Kibat after signing the agreements. Looking on were Sabah Chief Minister Datuk Seri Hajiji Noor (second from left) and PETRONAS president and Group CEO Tan Sri Tengku Muhammad Taufik (second from right).

Source: The Edge Malaysia

SMJE acquires 20% stake in North Sabah oil production sharing contract

NEWS & MEDIA

SMJE acquires 20% stake in North Sabah oil production sharing contract

9 February 2026

PETALING JAYA: Sabah state-owned oil and gas company SMJ Energy Sdn Bhd (SMJE) has acquired a 20% stake in the North Sabah enhanced oil recovery production sharing contract.

Under an agreement signed in Kuala Lumpur today, SMJE will assume a 20% non-operating partner interest from Petronas Carigali Sdn Bhd (PCSB).

SEA Hibiscus Sdn Bhd will continue as the operator with a 50% participating interest while PCSB retains the remaining 30%.

The move is expected to raise SMJE’s crude entitlement, increasing its cargo liftings from 4.7 in 2025 to 7.0 in 2026, enhancing revenue streams and supply reliability for Sabah.

Sabah chief minister Hajiji Noor said the acquisitiion reflects the state government’s long-term strategy to strengthen the state’s energy sector through high-quality investments and close collaboration with the national oil company.

“With opportunities now expanding across the state from the west to the east coast, we welcome reputable investors to partner with us in ensuring sustainable and lasting benefits for the people of Sabah,” he said after witnessing the exchange of documents.

SMJE chairman Masidi Manjun said North Sabah is a strategic production asset, and the company’s participation signals a maturing role for the state in upstream activities.

“This move secures long-term value, builds commercial capability, and ensures more benefits flow directly to the people of Sabah,” Masidi, who is also the deputy chief minister, said.

The North Sabah oil recovery production sharing contract includes four producing oil fields located in shallow waters, 70m deep, off Kota Belud.

Petronas Carigali Sdn Bhd CEO Hazli Sham Kassim (left) and SMJ Energy Sdn Bhd CEO Dionysia Kibat exchanging copies of the agreement at the signing ceremony. Sabah chief minister Hajiji Noor is second from left. (Sabah chief minister’s department pic)

Source: FMT