KUALA LUMPUR – Sabah has attained a back-in option arrangement for the Block SB40 Production Sharing Contract oil field, which was awarded to Petronas Carigali and E&P Malaysia Venture last year.
The state signed a letter of understanding (LoU) with Petronas Carigali and E&P Malaysia Venture today, the Chief Minister’s Department said in a statement here today.
The LoU will pave the way for the state government to obtain up to 20% participating interest upon completion of work or commercial discovery, whichever comes first.
The interest will be held by state wholly-owned SMJ Sdn Bhd.
Block SB409 is at the southwest of Sabah, involving an area of 14,556 sq km.
The oil field was awarded to Petronas Carigali and E&P Malaysia Venture by Petronas during the 2022 Malaysia bidding round.
SMJ Sdn Bhd CEO Dionysia Aloysius Kibat, Petronas Carigali CEO Hasliza Othman and E&P Malaysia Venture head Aliff Anwar signed the LoU at the Kuala Lumpur Convention Centre here today.
This is after the commercial collaboration agreement (CCA) signed between Petronas and the Gabungan Rakyat Sabah-led state government on December 7, 2021.
The CCA is aimed at increasing state revenue and participation in the oil and gas production and its value chain in Sabah, said Sabah Chief Minister Datuk Seri Hajiji Mohd Noor.
Hajiji said the state government will continue to pursue more deals with Petronas in the future. – The Vibes, February 15, 2023
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