Kota Kinabalu: SMJ Energy Sdn Bhd, wholly owned by the Sabah Government, has secured new exploration deals for offshore blocks SB306A and SB306B.
SMJ Energy CEO Dr Dionysia Kibat signed agreements alongside representatives from Petronas, Petronas Carigali Sdn Bhd (PCSB) and Inpex at the Malaysia Bidding Round award signing ceremony in Kuala Lumpur on Feb. 17.
AdvertisementThe agreements grant SMJ Energy 15pc participating right in both blocks, which includes: 7.5 per cent Free Carry Right from Inpex (meaning no financial burden during exploration) and 7.5per cent Back-In Right from Petronas Carigali (allowing future participation based on exploration success).
For Block SB306A, Inpex is the operator with 50per cent participating interest, while Petronas Carigali holds 42.5 per cent and SMJ Energy holds 7.5 per cent.
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Under the Free Carry and Back-In arrangement, SMJ Energy does not carry exploration risks and would decide whether to exercise the participation rights subject to exploration success and other commercial considerations.
AdvertisementThe event marks SMJ Energy’s additional exploration deals in Sabah. The first Back-In right was signed on Feb 15 2023 for Exploration Block SB409, and the second Back-In right was signed on Jan 23 2024 for Exploration Block SB403, both located offshore West Coast Sabah.
SMJ Energy also holds 50pc participating Interest in the Samarang PSC Joint Venture, 25pc in Samur petchem plant and 10pc in Petronas LNG9 Sdn Bhd.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});It also owns 100pc of Sabah International Petroleum which is now debt-free, generating strong cash flow from its FPSO (Floating Production Storage and Offloading) and FSO (Floating Storage Unit) operations.
SMJ Energy was set up on Nov. 10 2021 and declared RM110 million dividends in total for 2023 and 2024.