According to The Edge Markets article published on April 5 , 2023, Petronas Carigali Sdn Bhd (PCSB) has entered into a farm-out agreement with the Sabah state government’s wholly-owned company SMJ Sdn Bhd for the sale of 50% non-operating participating interest in the Samarang production sharing contract (PSC).
The transaction is currently awaiting regulatory approvals and fulfilment of conditions precedent, Petroliam Nasional Bhd (Petronas) said in a statement on Wednesday (April 5).
To recap, PCSB and SMJ inked a heads of agreement to record the parties’ agreement last month and confirm SMJ’s participation in the Samarang PSC, and this was superseded by the farm-out agreement.
“The agreement marks the second significant development between PCSB and SMJ, following the commercial collaboration agreement signed between Petronas and the Sabah state government on Dec 7, 2021,” Petronas said.
Under the farm-out agreement, PCSB will continue to be the operator of the Samarang PSC, with SMJ on board as a non-operating partner.
The Samarang field, located approximately 50km off the coast of Sabah, is currently producing approximately 36,000 barrels of oil and gas equivalent per day, said Petronas.
It added that the field’s gas production, which stood at 134 million standard cubic feet per day, is part of the supply for customers in Kota Kinabalu and Labuan.
