The transaction is currently pending regulatory approvals and fulfillment of conditions precedent
Petronas Carigali and Sabah State sign farm out agreement for Samarang PSC. (Credit: D Thory from Pixabay)
PETRONAS Carigali Sdn Bhd (PCSB), a wholly-owned subsidiary of PETRONAS has entered into a Farm Out Agreement (FOA) with SMJ Sdn Bhd (SMJSB), a company wholly-owned by the Sabah State Government for the sale of PCSB’s 50 per cent of non-operating participating interest in the Samarang Production Sharing Contract (PSC).
The agreement was signed by PCSB’s Chief Executive Officer, Hasliza Othman and SMJSB’s Chief Executive Officer, Dr. Dionysia Aloysius Kibat. The transaction is currently pending regulatory approvals and fulfillment of conditions precedent.
Last month, PCSB and SMJSB inked a Heads of Agreement to record the parties’ agreement and confirm SMJSB’s participation in the Samarang PSC, and this is superseded with the execution of the FOA.
The FOA marks the second significant development between PCSB and SMJSB following the Commercial Collaboration Agreement (CCA) signed between PETRONAS and the Sabah State Government on 7 December 2021.
Under the FOA, PCSB will continue to be the operator of Samarang PSC with SMJSB on board as the non-operating partner. The Samarang field, which is located approximately 50km off the coast of Sabah is currently producing approximately 36,000 barrels of oil and gas equivalent per day (kboe/d). The gas, at 134 million standard cubic feet per day (MMscf/d) is part of the supply for customers in Kota Kinabalu and Labuan.
This collaboration bears testament to PETRONAS’ continuous commitment to achieving its shared aspiration of sustainable growth for the domestic oil and gas industry.
Source: Company Press Release