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KOTA KINABALU – Sabah has officially acquired a 25% equity in Petronas Chemical Fertiliser Sdn Bhd via state-owned SMJ Sdn Bhd.
Sabah Chief Minister Datuk Seri Hajiji Mohd Noor lauded the move, which will give the state a key entry into the national petroleum giant’s ammonia and urea production facilities.
This was made possible following the definitive agreements entered between SMJSB and Petronas Chemicals Group Bhd (PCG) today.
Hajiji said this latest acquisition was part of the commercial collaboration agreement signed between the state government and Petronas on December 7, 2021 to improve collaboration between the two parties in Sabah’s oil and gas industry.
“The move envisioned under Hala Tuju Sabah Maju Jaya is to give Sabah greater revenue sharing in the oil and gas industry, and augurs well for its development and economic growth,” he said.
SMJ chief executive officer Dionysia Aloysius Kibat and PCG’s managing director and chief executive officer Mohd Yusri Mohamed Yusof signed for SMJSB and PCG respectively.
Petronas Chemical Fertiliser was established in 2011 with an ammonia and urea production complex constructed at Sipitang Oil and Gas Industrial Park.
The facility was designed to produce 1.9 million metric tonnes of ammonia and urea fertilisers annually.
It is viewed as the largest single-train ammonia and urea plant in Southeast Asia and the third largest urea plant in Asia Pacific.
Other agreements beneficial to the Sabah government include the deal between Petronas and Sabah Energy Corporation on selected downstream gas pipeline assets and supply of natural gas contracts in October last year.
The East Malaysian state also obtained a non-participating interest in the Samarang production sharing contract through a farmout agreement with Petronas Carigali on April 4. – The Vibes, March 25, 2023
