Kota Kinabalu: The Sabah Government, through its wholly owned company SMJ Energy Sdn Bhd, maintains its strong momentum in the new year with the signing of two agreements involving Exploration Blocks SB306A and SB306B, offshore Sabah’s East Coast.
With the signing of the 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.
AdvertisementSB306A is operated by INPEX, holding 50 percent Participating Interest (PI) while PETRONAS Carigali Sdn Bhd (PCSB) holds 42.5 percent PI and SMJ Energy with 7.5 percent PI. For SB306B, PCSB serves as the operator with a 50 percent PI, with INPEX holding 42.5 percent PI and SMJ Energy holds 7.5 percent PI.
Under the Free Carry and Back-In arrangement, SMJ Energy does not carry exploration risks and will decide whether to exercise the participation rights subject to exploration success and other commercial considerations.
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