Latest news with #SMJE
New Straits Times
6 days ago
- Business
- New Straits Times
Sabah to acquire 25pct stake in ZLNG facility
KUALA LUMPUR: The Sabah government, through SMJ Energy (SMJE), will be acquiring a 25 per cent equity stake in the USD3.1 billion nearshore floating liquefied natural gas (ZLNG) facility in Sipitang. The state-owned company signed the Head of Agreement (HOA) with Petronas at the Malaysia Petroleum Club (MPC) today. "This partnership marks another significant milestone in ensuring Sabah's long-term development goals, promoting industrial growth, energy security, and creating new opportunities to drive the state's progress. "Through strategic investments like ZLNG, we will strengthen the state's economic resilience while ensuring that the benefits of Sabah's natural resources directly contribute to the well-being of our people," Chief Minister Datuk Seri Hajiji Noor said in a statement after witnessing the HOA signing. The ZLNG facility, with a capacity of two million tonnes per annum (MTPA), represents a major addition to Malaysia's LNG landscape. Positioned nearshore in Sipitang, the ZLNG facility is currently under construction and is expected to commence operations in the second half of 2027. This project complements Sabah's growing LNG portfolio, alongside two other floating LNG facilities, PFLNG1 (1.2 MTPA) and PFLNG2 (1.5 MTPA), currently operating in Sabah waters. The state government also announced its intention to acquire a 40 per cent participating interest in PFLNG1 through SMJ Energy, with due diligence expected to begin in the second half of 2025. SMJ Energy's growth trajectory since the signing of the Commercial Collaboration Agreement (CCA) with Petronas in December 2021 has been rapid. The company now holds 50 per cent equity in the Samarang PSC oil production asset, 10 per cent equity in LNG9, 25 per cent equity in the SAMUR petrochemical complex, and full ownership of Sabah International Petroleum (SIP), which operates both FPSO and FSO assets. SMJ Energy also holds free-carry and back-in rights in the following exploration blocks: SB409 (20 per cent), SB403 (20 per cent), SB306A (15 per cent), and SB306B (15 per cent). "We are a prudent financial investor with a disciplined approach to portfolio building. Our entry into ZLNG is part of our strategic plan to further diversify and strengthen our position in the upstream, LNG, and petrochemical sectors," the company said.
Daily Express
7 days ago
- Business
- Daily Express
Sabah to acquire 25pc stake in USD3.1b LNG project
Published on: Thursday, July 17, 2025 Published on: Thu, Jul 17, 2025 Text Size: Hajiji with Petronas President and Group Chief Executive Officer Tan Sri Tengku Muhammad Taufik, witnessing the signing of the HOA between Petronas LNG Sdn Bhd, represented by Vice President of LNG Marketing and Trading – Gas and Maritime, Shamsair Mohd Ibrahim, and Dionysia. – Pic by CMD Kuala Lumpur: The Sabah Government, through SMJ Energy (SMJE), will acquire a 25 per cent equity in the USD3.1 billion nearshore floating liquefied natural gas (ZLNG) facility in Sipitang following the signing of a Head of Agreement (HOA) with Petronas. Chief Minister Datuk Seri Hajiji Noor, who witnessed the signing at the Malaysia Petroleum Club, said the deal supports Sabah's long-term development goals and ensures the State's resources benefit its people. Advertisement ZLNG, currently under construction and due to begin operations in the second half of 2027, will have a processing capacity of 2 million tonnes per annum. The facility will add to Sabah's LNG portfolio alongside PFLNG1 and PFLNG2, which are already operating in the State's waters. Sabah also aims to acquire a 40 per cent stake in PFLNG1, with due diligence expected to begin in the second half of 2025. Since inking a Commercial Collaboration Agreement with Petronas in 2021, SMJ Energy has expanded rapidly, holding stakes in several key oil, gas, and petrochemical assets. SMJE CEO Datuk Dionysia Kibat said the company's entry into ZLNG is part of its plan to secure long-term, stable returns from quality energy investments. * 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
14-07-2025
- Business
- Daily Express
GRS Government had to rescue Sabah International Petroleum, says Chia
Published on: Monday, July 14, 2025 Published on: Mon, Jul 14, 2025 Text Size: Dr Roland (left) reminded Abdul Kadir (right) that the GRS administration had to step in to address the financial distress of SIP and protect the State's fiscal stability. Kota Kinabalu: The Sabah Government defended its restructuring of the State's oil and gas sector, dismissing criticism by former Sabah Oil and Gas Development Corporation (SOGDC) Chief Executive Officer Abdul Kadir Abdullah Damsal as misrepresenting the facts. In a statement, Sunday, Political Secretary to the Chief Minister Datuk Dr Roland Chia reminded Abdul Kadir that the Gabungan Rakyat Sabah (GRS) administration had to step in to address the financial distress of Sabah International Petroleum (SIP) and protect the State's fiscal stability. 'Let's be clear: Sabah International Petroleum (SIP) was in financial distress before its restructuring by the current government. The intervention by the GRS administration was not cosmetic – it was necessary to protect Sabah's fiscal stability and reclaim control over strategic energy assets,' he said. SIP was in debt to the tune of RM1 billion. He said SMJ Energy (SMJE) was created to do what previous structures failed to – consolidate state energy interests, enter direct upstream participation, and deliver real value to Sabahans. 'Under the current government, Sipitang Oil and Gas Industrial Park (SOGIP) has attracted investor confidence, with Esteel Enterprise Sdn Bhd's RM31 billion investment being a prime example. 'The facts post-CCA speak for themselves. SMJE now holds equity in key oil and gas blocks. Sabah Energy Corporation (SEC) has secured onshore gas distribution rights – a historic first. 'In 2024 alone, RM2 billion in contracts were awarded to Sabah-based companies, many of which are now expanding beyond state borders. These are not abstract figures. They represent real jobs and real local economic gains,' he said. 'Yes, Sabahans have long contributed to the oil and gas industry. But what is different now is institutional empowerment. 'SMJE and SEC are no longer observers – they are lead players, and Sabahans are now holding key leadership roles because of proactive state engagement, not luck,' he said. Dr Roland said Datuk Seri Masidi Manjun's remarks in the State Assembly were made in direct response to a question by Datuk Seri Shafie Apdal on why Sabah (particularly, SMJE) was not participating in the bidding for an exploratory oil and gas block on the East Coast. 'To twist that context into a personal attack is not only misleading but a deliberate attempt to politicise a factual explanation,' said Dr Roland. * 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
13-07-2025
- Business
- Daily Express
Sabah O&G reform rooted in restructuring: Chia
Published on: Sunday, July 13, 2025 Published on: Sun, Jul 13, 2025 Text Size: KOTA KINABALU: Political Secretary to the Chief Minister, Datuk Dr Roland Chia ( pic ), has dismissed recent remarks by former SOGDC CEO Abdul Kadir Abdullah Damsal, saying they misrepresent Sabah's current oil and gas progress. He said Sabah International Petroleum (SIP) was in financial distress before the GRS administration restructured it to safeguard state interests and create SMJ Energy (SMJE) to deliver long-term value. Chia added that the Sipitang Oil and Gas Industrial Park (Sogip) is now gaining investor confidence, with a major RM31 billion commitment from Esteel Enterprise Sdn Bhd highlighting the shift. He noted that since the Commercial Collaboration Agreement (CCA), SMJE has secured equity in key oil and gas blocks, while Sabah Energy Corporation (SEC) has obtained onshore gas distribution rights and over RM2 billion in contracts awarded to Sabah-based firms this year alone. Responding to claims regarding SMJE's absence from a recent oil and gas bid, Chia clarified that Datuk Seri Masidi Manjun's State Assembly response was factual and not a personal attack, stressing that Sabah's energy institutions are now empowered and led by Sabahans. * 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
13-07-2025
- Business
- Borneo Post
Sabah's oil and gas gains built on reforms, not rhetoric — Dr Roland
Dr Roland KOTA KINABALU (July 13): The Sabah government's progress in the oil and gas sector is grounded in facts and meaningful reforms, not political rhetoric, said Datuk Dr Roland Chia, Political Secretary to the Chief Minister. Responding to recent remarks by former Sabah Oil and Gas Development Corporation (SOGDC) CEO Abdul Kadir Abdullah Damsal, Dr Roland said the statement distorted reality and overlooked a prolonged period of stagnation under the latter's leadership. 'The recent statement by former SOGDC CEO misrepresents the facts and conveniently glosses over a time of inertia during his own tenure,' said Dr Roland in a statement on Sunday. 'Let's be clear: Sabah International Petroleum (SIP) was in financial distress before it was restructured by the current government. The GRS administration's intervention wasn't just symbolic — it was critical for safeguarding Sabah's financial position and reclaiming control over key energy assets,' he said. Dr Roland noted that SMJ Energy (SMJE) was established to address past structural failures, consolidate state energy interests, enter direct upstream participation, and deliver tangible benefits to the people. 'Under the present administration, the Sipitang Oil & Gas Industrial Park (SOGIP) has gained investor confidence, with Esteel Enterprise Sdn Bhd's RM31 billion investment being a standout example,' he said. He added that the results following the signing of the Commercial Collaboration Agreement (CCA) speak volumes. 'SMJE now holds equity in major oil and gas blocks. Sabah Energy Corporation (SEC) has secured onshore gas distribution rights — a historic milestone. In 2024 alone, RM2 billion in contracts were awarded to Sabah-based companies, many of which are now expanding operations beyond the state,' he said. 'These are not just numbers — they represent real jobs and real economic growth for Sabahans,' Dr Roland stressed. Acknowledging Sabah's longstanding contribution to Malaysia's oil and gas industry, he said the current administration has brought genuine institutional empowerment to the state. 'SMJE and SEC are no longer passive entities. They are now key players, with Sabahans taking the lead — not by chance, but through strategic state action,' he said. Addressing claims surrounding State Finance Minister Datuk Seri Masidi Manjun's remarks in the State Assembly, Dr Roland clarified that they were made in direct response to a question by Datuk Seri Shafie Apdal regarding SMJE's non-participation in an East Coast exploratory bid. 'To twist that context into a personal attack is not only misleading but a deliberate attempt to politicise a factual explanation,' he said. He urged all parties to stay focused on the real, measurable progress made under the GRS government rather than engage in distortions that undermine public trust.
