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SMJ Energy Sdn Bhd (SMJESB) attained a second back-in option for the Block SB403 Production Sharing Contract oil field which was among the oil blocks by Petronas awarded under the Malaysia Bidding Round (MBR) 2023.
SMJ Energy signed a letter of understanding (LoU) with Petronas Carigali and E&P Malaysia Venture, allowing the state-owned oil and gas firm to obtain up to 20% participating interest in Block SB403 under the back-in option.
The back-in option is exercisable upon completion of work commitment or commercial discovery, whichever is earlier, SMJ Energy Sdn Bhd said in a statement today.
This is the company’s second exploration back-in option deal after the first back-in option signed on Feb 15 last year for Block SB409 PSC, situated offshore Sabah covering 14,556 sq km of area.
Block SB403 was awarded to PCSB and EPMV by national oil company Petronas during the 2023 MBR.
It is situated offshore north of Sabah covering 10, 256 sq km.
“Under the back-in option deal, SMJ Energy has the opportunity to access and review the information and data obtained from the exploration work before deciding to accept or turn down the back-in option offer.
“With that, it can manage exploration risks to the minimum. No cost will be incurred by SMJ Energy should it choose not to take up the back-in offer,” it said.
The LoU was signed by SMJ Energy Sdn Bhd Executive Director Upstream Albert Lo, Petronas Carigali Chief Executive Officer Hasliza Othman, and E&P Malaysia Ventures Head, Aliff Anwar, during a ceremony at the Kuala Lumpur Convention Centre.
The LoU was made possible following the signing of the Commercial Collaboration Agreement (CCA) between Petronas and the Sabah Government on December 7, 2021.
The CCA aims to increase revenue sharing, participation and say in the production and monetisation of oil and gas resources in Sabah.
SMJ Energy also has a 50% stake in the Samarang Production Sharing Contract and a 25% share in the Sabah Ammonia Urea Petrochemical plant.
SMJ Energy also obtained a 10% ownership in Petronas LNG9, which operates a plant in the Bintulu LNG complex in Sarawak, following the company’s acquisition of Sabah International Petroleum (SIP) last year.
The state-owned oil and gas company successfully issued its maiden Islamic medium-term notes of up to RM900 million based on the Shariah principal Sukuk Wakalah on October 20 last year, allowing it to acquire SIP. - The Vibes, January 24, 2024
