Latest news with #MutiaraCluster
Daily Express
8 hours ago
- Business
- Daily Express
Sabah must start leading in oil and gas: Azis
Published on: Thursday, July 10, 2025 Published on: Thu, Jul 10, 2025 By: Abbey Junior Text Size: Azis (left) also dismissed the claim that working quietly has brought results for Sabah. Masidi (right). Kota Kinabalu: Warisan on Wednesday hit out at Sabah Finance Minister Datuk Seri Masidi Manjun for saying the State is not ready to bid for upstream oil and gas projects, calling the statement a reflection of poor political will rather than capacity. Its Information Chief Datuk Mohd Azis Jamman said Sabah can no longer afford to remain on the sidelines while others profit from its resources. 'If we claim we lack expertise, then bring in real experts — not loyalists whose only skills are to plunder and pander,' he said in a statement, Wednesday. He said Sabah must stop relying on sub-contracts and concessions handed out by external parties, and instead take the lead in building its own capacity and control. On Tuesday, Masidi told the State Assembly that state-owned firms Sabah International Petroleum (SIP) and SMJ Energy were not bidding for oil and gas blocks due to a lack of technical know-how and capital. He was responding to Warisan President Datuk Seri Mohd Shafie Apdal (Senallang), who had questioned why Sabah firms were left out of the Mutiara Cluster project off Sandakan. The contract was recently awarded to Dialog Resources Sdn Bhd, a wholly-owned subsidiary of Dialog Group Berhad based in Peninsular Malaysia. Azis questioned the rationale behind the State's passive approach and said experience can only come if Sabah starts participating actively. 'Every million starts with one. If we wait forever, we will always be excluded from our own wealth,' he said. He pointed out that the State had previously issued nearly RM1 billion in Sukuk to settle debts, including for vessels that remain unaccounted for. 'So, don't tell us it's impossible to raise funds for SMJ Energy to participate both upstream and downstream,' he said. He added that Sabah can form strategic partnerships with credible investors, provided the State retains control over the management of its natural resources. Azis also dismissed the claim that working quietly has brought results for Sabah. 'Our oil wealth continues to leave Sabah, yet our people see very little of the benefit,' he said. He stressed that the core issue is not Sabah's readiness, but whether its leaders are bold enough to prioritise the State's future over political convenience. 'True leadership isn't about waiting. It's about taking action — and ensuring that Sabah finally gets what it deserves.' * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
8 hours ago
- Business
- Daily Express
SMJ Energy clarifies: Decision not to participate in the bidding exercise for Mutiara Cluster
Published on: Thursday, July 10, 2025 Published on: Thu, Jul 10, 2025 Text Size: SMJ Energy said it will continue pursuing strategic acquisitions and partnerships in line with this disciplined investment framework, with further announcements expected in due course. Kota Kinabalu: SMJ Energy on Wednesday clarified its decision not to participate in the recent bidding exercise for the Mutiara Cluster, citing prudent financial strategy and risk management aligned with Sabah's long-term oil and gas objectives. The State-owned energy company said in a statement that its current investment focus is guided by the Sabah Government's priority of securing greater revenue-sharing and stronger participation in the State's oil and gas sector, as outlined under the landmark Commercial Collaboration Agreement (CCA) signed with national oil company Petronas. 'Since its establishment, SMJ Energy has evolved into a company valued at RM5 billion, with equity holdings in several high-value and cash-generating assets,' said the statement. These include a 50 per cent stake in the Samarang Production Sharing Contract (PSC), 10pc in LNG9, and 25pc in the Samur petrochemical plant, all of which are profitable ventures with proven returns. Despite being a relatively young company, SMJ Energy has declared dividends totalling RM160 million in under three years of operation, reflecting the strong performance of its asset portfolio. The company emphasised that oil and gas is a high-investment, high-risk business. 'Exploration failures can result in losses amounting to hundreds of millions, or even billions,' it said. Given the State's financial limitations and competing development priorities, SMJ Energy said it is taking a cautious and responsible investment approach, focusing on acquiring proven, revenue-generating assets operated by reputable partners with strong environmental, social and governance (ESG) credentials. For exploration prospects, SMJ Energy prefers to minimise risk through mechanisms such as 'free carry' and 'back-in rights', allowing the company to participate only after successful discoveries have been made, without upfront exposure to the high cost and risk of initial exploration. 'To date, SMJ Energy holds free carry and back-in rights in blocks SB409 (20pc), SB403 (20pc), SB306A (7.5pc) and SB306B (7.5pc),'said the statement. As for the Mutiara Cluster, SMJ Energy said it is classified as a Discovered Resource Opportunity (DRO), which would require substantial exploration and development investment without any guarantee of commercial success. 'Such prospects are not a current priority for SMJ Energy,' said the company, adding that under the CCA, it reserves the right to acquire DRO assets from Petronas once they are successfully developed and de-risked. The company said this approach reflects its broader strategy of managing risk while building a balanced and profitable portfolio across upstream oil and gas, liquefied natural gas (LNG) and petrochemicals, all while remaining mindful of Sabah's overall fiscal priorities. SMJ Energy said it will continue pursuing strategic acquisitions and partnerships in line with this disciplined investment framework, with further announcements expected in due course. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
20 hours ago
- Business
- Borneo Post
SMJ Energy defends strategy, avoids high-risk oil & gas bids due to financial concerns
KOTA KINABALU (July 9): State-owned SMJ Energy has clarified its decision not to bid for high-investment oil and gas blocks, citing significant financial risks. The company emphasized a cautious approach, opting to secure free carry or back-in rights in exploration projects to mitigate potential losses. Under back-in rights, SMJ Energy only participates after successful exploration, avoiding upfront costs and shielding itself from expensive failures. The statement follows remarks by State Finance Minister Datuk Masidi Manjun, who acknowledged that SMJ Energy and Sabah International Petroleum (SIP) lacked the technical expertise and capital to bid for blocks like the Mutiara Cluster, recently awarded to Dialog Group Berhad's subsidiary. SMJ Energy explained that the Mutiara Cluster falls under Discovered Resource Opportunities (DROs), requiring heavy investment with no guaranteed success. 'These prospects are not a current priority,' the company said in a statement on Wednesday. Instead, its focus remains on securing greater revenue sharing and participation in Sabah's oil and gas sector through its Commercial Collaboration Agreement (CCA) with Petronas. The deal allows SMJ Energy to acquire developed DRO assets from Petronas post-successful exploration. SMJ Energy highlighted its RM5 billion portfolio, including stakes in Samarang PSC (50%), LNG9 (10%) and SAMUR Petrochemical Plant (25%), all generating strong cash flows. Since its inception, SMJ Energy has declared RM160 million in dividends in under three years. 'Oil and gas is high-risk, high-reward — exploration failures can lead to losses in the billions,' the company stated, defending its prudent financial strategy of acquiring profitable, producing assets with reputable operators. Earlier, Parti Warisan information chief Datuk Mohd Azis Jamman criticized the state government for relying on subcontracting instead of direct bidding. SMJ Energy, however, maintains its strategy ensures sustainable growth while minimizing exposure to volatile exploration risks. The company plans to announce further strategic acquisitions aligned with its risk-managed approach. Azis called Masidi's statement that Sabah is 'not ready' to directly participate in bidding for oil blocks an excuse that exposes the real problem with how the state's resources have been managed. 'With due respect, Datuk Seri, your statement that Sabah is 'not ready' reveals more about how our resources have been handled so far: distributing concessions to cronies and sub-contractors, letting others do the work, while the government merely collects 'percent-percent',' he said in a statement. Azis argued that if the state genuinely lacks technical expertise, there should be no excuse not to recruit the right people. 'If we claim we lack expertise, why not recruit and appoint true experts? Find and hire qualified professionals, not political loyalists whose only skill is 'samun dan jilat',' he said, adding that Sabah must start somewhere if it ever hopes to gain experience. 'Every million always starts with number one. Waiting forever keeps Sabah permanently at the margins of its own wealth,' he stressed. Addressing concerns over funding, Azis pointed out that the state government had previously issued almost RM1 billion in SUKUK to settle legacy debts, including buying vessels worth hundreds of millions, the whereabouts of which, he claimed, remain unknown. 'So don't tell us it's impossible to raise funds for SMJ Energy to participate upstream and downstream in Sabah's resource-rich waters,' he said, adding that smart partnerships with credible investors could also be pursued, but with Sabah retaining control over management and its natural resources. Azis also questioned how much experience Petronas contractors had when they first ventured into upstream and downstream operations. 'If those companies were 'ready' back then, why can't Sabah — or SMJ Energy — also be ready now?' he asked. Taking aim at Masidi's oft-cited mantra of 'kerja diam-diam tapi hasil ada' (quiet work, but results are there), Azis countered that the reality on the ground tells a different story. 'It's ironic to hear about 'kerja diam-diam tapi hasil ada' when in reality, Sabah's oil wealth still leaves our shores, and our people see so little,' he said. For Azis, the real issue is not Sabah's readiness but whether its leaders are truly prepared to prioritize the people's interest over political convenience and the sub-contracting of opportunities to cronies. 'True leadership doesn't wait for perfect conditions. True leadership means starting now — building expertise, controlling our resources, and ensuring Sabah finally benefits directly from the wealth beneath our own soil and sea,' he said.
Daily Express
a day ago
- Business
- Daily Express
SMJ Energy explains non-participation in Mutiara Cluster bid
Published on: Wednesday, July 09, 2025 Published on: Wed, Jul 09, 2025 Text Size: KOTA KINABALU: SMJ Energy, in a statement on Wednesday, has clarified that its decision not to participate in the Mutiara Cluster bid aligns with its strategic approach to prudent oil and gas investments. The company said its priority remains securing greater revenue sharing and decision-making power in Sabah's oil and gas sector through the Commercial Collaboration Agreement (CCA) with Petronas. Since its establishment, SMJ Energy has grown to a company valued at RM5 billion, with equity in profitable producing assets generating strong cashflows. These include a 50 per cent stake in the Samarang PSC, 10 per cent in LNG9, and 25 per cent in the Samur petrochemical plant. Within less than three years, the young company has declared RM160 million in dividends, reflecting its focus on returns. SMJ Energy noted that exploration in the oil and gas sector carries high financial risks, with potential losses running into the hundreds of millions. To minimise such exposure, SMJ Energy focuses on acquiring producing assets operated by reputable firms with strong ESG records. For exploration prospects, the company secures free carry or back-in rights, allowing it to participate only after successful discoveries. It currently holds such rights in SB409, SB403, SB306A and SB306B, with shares ranging from 7.5 per cent to 20 per cent. The Mutiara Cluster, being a Discovered Resource Opportunity requiring major investment and appraisal, is not part of SMJ Energy's current priorities. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
a day ago
- Business
- Daily Express
Sabah not ready to bid for major oil block yet: Masidi
Published on: Wednesday, July 09, 2025 Published on: Wed, Jul 09, 2025 By: Abbey Junior Text Size: State Finance Minister Datuk Seri Masidi Manjun said both SMJ Energy and Sabah International Petroleum (SIP) did not submit bids for the Mutiara Cluster production-sharing contract (PSC), which Petronas recently awarded to Peninsular Malaysia-based Dialog Group Berhad. Kota Kinabalu: Sabah's state-owned energy firms were not involved in the bidding for a lucrative oil block off the east coast because they still lack the expertise and capital needed to compete in large-scale exploration projects, the State Assembly was told. State Finance Minister Datuk Seri Masidi Manjun said both SMJ Energy and Sabah International Petroleum (SIP) did not submit bids for the Mutiara Cluster production-sharing contract (PSC), which Petronas recently awarded to Peninsular Malaysia-based Dialog Group Berhad. 'Exploration requires billions in capital. At this point, SIP and SMJ are not yet qualified to take on such bidding because we lack the technical expertise,' he said during the question-and-answer session. He was responding to a supplementary question from opposition leader Datuk Seri Mohd Shafie Apdal (Warisan-Senallang), who raised concerns about Sabah firms being sidelined in the management of its own oil and gas resources. 'This isn't about politics. It's about protecting what belongs to Sabah,' said Shafie. 'Why weren't SMJ or SIP even involved, when the block is right off our coast?' Masidi explained that the Mutiara Cluster contract was part of an international bid under the Malaysia Bid Round 2025, and it is still at the exploration stage. 'No oil has been extracted yet. But trust me — SMJ has its own involvement, which we will announce later,' he said. He also stressed that Sabah's role in the sector is protected under the Commercial Collaboration Agreement (CCA) signed with Petronas, which includes a joint committee to determine the extent of the State's participation. 'So far, there is nothing Petronas has given to Sarawak that it won't also give to Sabah,' he said. Masidi added that while Sarawak had a 100-year head-start in the oil and gas industry, Sabah was only now beginning to catch up. 'We are just starting out — we're crawling while they are already running,' he said. Despite Shafie's call for firmer policies to secure Sabah's natural resources, Masidi said the State Government believes in quiet but consistent action. 'We work quietly - and we see results. Others may talk, but have no outcomes,' he said. Earlier, Daily Express reported that Dialog Group Berhad, a Peninsular Malaysia-based company listed on Bursa Malaysia, was awarded a 14-year production-sharing contract by Petronas on June 13 for the Mutiara Cluster Small Field Asset through its wholly owned unit, Dialog Resources Sdn Bhd. The cluster comprises five marginal fields — Nymphe, Nymphe North, Kuda Terbang, Benrinnes and Mutiara Hitam — located in the Sandakan Basin. It marks the first time commercially viable oil and gas reserves have been confirmed off Sabah's east coast in the Sulu Sea, with first gas targeted before the first quarter of 2029. To accelerate the project, Dialog also signed a one-year, non-binding memorandum of understanding (MOU) with Petronas to explore cost reductions and fast-track production. The two parties will share technical data and collaborate on field development and abandonment plans. Founded in 1984 and led by Tan Sri Dr Ngau Boon Keat, Dialog has grown through partnerships with global technology providers. It is a constituent of the FTSE4Good Bursa Malaysia and FBM Mid 70 Index, with a market capitalisation of RM9.3 billion. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
