Latest news with #SamarangProductionSharingContract
Daily Express
4 days 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
Daily Express
14-05-2025
- Business
- Daily Express
Latest SMJ Energy crude oil sale generates RM92 million
Published on: Thursday, May 15, 2025 Published on: Thu, May 15, 2025 Text Size: The company's Samarang Production Sharing Contract (PSC), an offshore asset located in Sabah waters, continues to be a reliable revenue source for the energy provider. Kota Kinabalu: SMJ Energy Sdn Bhd (SMJ Energy) completed its ninth crude oil lifting operation at the Labuan Crude Oil Terminal, generating approximately RM92 million in sales revenue. The latest sale brings SMJ Energy's total oil and gas revenue to roughly RM1.7 billion since operations began, with RM158 million generated in 2025 alone. The company's Samarang Production Sharing Contract (PSC), an offshore asset located in Sabah waters, continues to be a reliable revenue source for the energy provider. The Samarang field serves as the exclusive natural gas supplier to Kota Kinabalu Industrial Park and powers three gas plants in the Kota Kinabalu area. Additionally, the field supplies natural gas to Labuan, providing essential energy to the Labuan Methanol Plant and the SESB Power Plant on the island. SMJ Energy continues to explore further optimisation opportunities within the field to enhance output and maximize returns. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * 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
14-05-2025
- Business
- Daily Express
Ninth crude oil lifting nets RM92 million for SMJ Energy
Published on: Wednesday, May 14, 2025 Published on: Wed, May 14, 2025 Text Size: KOTA KINABALU: SMJ Energy has completed its ninth crude oil lifting from the Samarang Production Sharing Contract (PSC) at the Labuan Crude Oil Terminal. The latest lifting is expected to generate RM92 million in sales revenue, marking another milestone in the company's upstream performance. Cumulative crude oil and gas sales now stand at RM1.7 billion, with RM158 million earned since early 2025, reinforcing Samarang's strategic role in SMJ's revenue stream. This reflects SMJ Energy's solid investment in the offshore Sabah-based PSC and its commitment to operational excellence and value creation. Samarang PSC remains a key supplier of gas to KKIP, three power plants here, the Labuan Methanol Plant 1, and SESB's Labuan facility. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * 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
New Straits Times
12-05-2025
- Business
- New Straits Times
Sabahans want local parties to lead state government, says Hajiji
KOTA KINABALU: The people of Sabah want local parties to lead the state government, said Chief Minister Datuk Seri Hajiji Noor. "That is why I want Gabungan Rakyat Sabah (GRS) to lead in the upcoming 17th Sabah election. I feel the pulse of the people. "Their aspiration is for the state government to be led by a local party. "We must not think otherwise. We must continue to support the current government, whose achievements are already evident," he said in his speech during the "Programme with the Chief Minister: Building Kunak's Future" at Padang Pekan Kunak here. At present, the eight-party GRS coalition holds 38 seats in the state assembly, followed by Parti Warisan with 14, Umno with 11, and Pakatan Harapan with seven. "We have implemented many initiatives across Sabah that will benefit the state's future, not just in terms of development, but also in boosting our overall economy. "I am proud that we have a strong team in the government and that the people have given us solid support. "We must learn from Sabah's political history. If we keep fighting, we will remain divided," he said. Hajiji said the state government's achievements under his leadership are unprecedented, citing the Commercial Cooperation Agreement (CCA) with Petronas as an example, which has brought many benefits to Sabah. Under the agreement, Sabah secured a 20 per cent stake in the Samarang Production Sharing Contract (PSC) and the Sabah Ammonia Urea (SAMUR) project in Sipitang. "There is much we have already gained, and several matters are still being negotiated with Petronas," he said. At the event, Hajiji also announced the handing over of land under the Sabah Housing and Town Development Authority (LPPB) to be gazetted as village reserve land for Kampung Kunak Jaya, Bagian, and Selamat. He also announced a RM1.2 million state allocation to build jetty facilities in Kampung Pangkalan.
Daily Express
22-04-2025
- Business
- Daily Express
SMJ Energy records 40pc rise in profit to RM362 million
Published on: Wednesday, April 23, 2025 Published on: Wed, Apr 23, 2025 Text Size: Masidi Manjun attributed the achievement to the dedication and professionalism of the company's team, in close collaboration with key stakeholders, including Petronas. - Pic: SMJ Energy. Kota Kinabalu: SMJ Energy Sdn Bhd (SMJ Energy) recorded a profit after tax of RM362 million based on its unaudited financial results for the year ended Dec 31, 2024, a nearly 40 per cent increase from RM259 million in 2023. The impressive performance underscores the company's resilience and strong fundamentals, achieved despite a volatile global energy landscape. The growth was driven by strategic asset optimisation, disciplined cost management and sustained revenue growth. Revenue for the year saw a significant year-on-year increase, bolstered by strong contributions from key assets such as the Samarang Production Sharing Contract (PSC), LNG Train 9 liquefaction plant, Petronas Chemical Fertiliser Sabah Sdn Bhd (PCFSSB), as well as Floating Production Storage and Offloading (FPSO) and Floating Storage Operations (FSO) under Sabah International Petroleum (SIP), which remains debt-free. Finance Minister Datuk Seri Masidi Manjun, who is also Chairman of SMJ Energy, attributed the achievement to the dedication and professionalism of the company's team, in close collaboration with key stakeholders, including Petronas. 'With a well-balanced portfolio across Upstream, LNG, Petchem and FPSO/FSO segments, SMJ Energy is well-positioned to maintain financial strength even in a low oil price environment,' he said. However, Masidi urged continued vigilance amid global economic uncertainties, including the ongoing tariff conflicts and fluctuating oil prices. 'The volatility in global oil markets highlights the importance of maintaining proactive risk management and prudent investment strategies,' he said. Beyond profitability, SMJ Energy is playing an active role in strengthening local participation in Sabah's oil and gas services and equipment (OGSE) sector. In 2024, the total value of contracts awarded to Sabahan companies rose to RM2 billion, a significant leap from RM613 million in 2021, without compromising on cost, safety, quality or project schedules. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * 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
