KOTA KINABALU: SMJ Energy, in a statement on Wednesday, has clarified that its decision not to participate in the Mutiara Cluster bid aligns with its strategic approach to prudent oil and gas investments.
The company said its priority remains securing greater revenue sharing and decision-making power in Sabah’s oil and gas sector through the Commercial Collaboration Agreement (CCA) with Petronas.
Since its establishment, SMJ Energy has grown to a company valued at RM5 billion, with equity in profitable producing assets generating strong cashflows.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});These include a 50 per cent stake in the Samarang PSC, 10 per cent in LNG9, and 25 per cent in the Samur petrochemical plant.
Within less than three years, the young company has declared RM160 million in dividends, reflecting its focus on returns.
SMJ Energy noted that exploration in the oil and gas sector carries high financial risks, with potential losses running into the hundreds of millions.
To minimise such exposure, SMJ Energy focuses on acquiring producing assets operated by reputable firms with strong ESG records.
For exploration prospects, the company secures free carry or back-in rights, allowing it to participate only after successful discoveries.
It currently holds such rights in SB409, SB403, SB306A and SB306B, with shares ranging from 7.5 per cent to 20 per cent.
The Mutiara Cluster, being a Discovered Resource Opportunity requiring major investment and appraisal, is not part of SMJ Energy’s current priorities.
