Sabah officially acquires 25pc equity in Petronas
KOTA KINABALU, April 25 — Sabah has officially obtained a 25 per cent stake in Petronas, Chief Minister Datuk Seri Hajiji Noor announced today.
The state-owned SMJ Sdn Bhd will officially acquire a 25 per cent equity in Petronas Chemicals Fertiliser Sabah Sdn Bhd (PC FSSB), giving them a stake in the PC FSSB’s world-scale ammonia and urea production facilities.
“This was made possible following the definitive agreements entered between SMJSB and Petronas Chemicals Group Berhad (PCG) today, subsequent to the Heads of Agreement (HoA) signed on January 9, 2023,” said Hajiji.
He said this latest acquisition was part of the Commercial Collaboration Agreement (CCA) signed between the State Government and Petronas on December 7, 2021, to enhance collaboration between the two parties in developing the oil and gas industry in Sabah.
“The move envisioned under the ‘Hala Tuju Sabah Maju Jaya’ was to give Sabah greater revenue sharing in the oil and gas industry and augurs well for its development and economic growth,” he said.
SMJSB’s chief executive officer Dionysia Aloysius Kibat and PCG’s managing director and chief executive officer Mohd Yusri Mohamed Yusof signed for SMJSB and PCG respectively.
PC FSSB was established in 2011 to construct, own and operate an integrated ammonia and urea production complex at the Sipitang Oil and Gas Industrial Park (SOGIP).
PC FSSB’s facilities are designed to produce 1.9 million metric tonnes per annum of ammonia and urea.
It is South-east Asia’s largest single-train ammonia and urea plant and the third-largest urea plant in the Asia Pacific.
Sabah has also made significant progress through its wholly-owned company, Sabah Energy Corporation following the signing of the agreement with Petronas in October last year, giving SEC selected downstream gas pipeline assets and supply of natural gas contracts.
SMJSB had also finalised the acquisition of a 50 per cent of non-operating participating interest in the Samarang Production Sharing Contract (PSC) through the Farm-Out Agreement (FOA) with Petronas Carigali Sdn Bhd (PCSB), a wholly-owned subsidiary of Petronas recently, on April 4.
