The national oil corporation, in a statement today, said the agreement marked the second significant development between both parties following the commercial collaboration agreement signed between Petronas and the Sabah government on Dec 7, 2021.

The FOA, the statement said, also superseded the heads of agreement previously signed by both parties to confirm SMJ’s participation in the Samarang PSC.

Under the FOA, Petronas Carigali will continue to be the operator of Samarang PSC while SMJ is to act as the non-operating partner.

The FOA was signed by Petronas Carigali CEO Hasliza Othman and SMJ CEO Dionysia Aloysius Kibat. The transaction is currently pending regulatory approvals and fulfilment of precedent conditions.

The Samarang field, which is located approximately 50km off the coast of Sabah is currently producing approximately 36,000 barrels of oil and gas equivalent per day.

The gas, at 134 million standard cubic feet per day, is part of the supply for customers in Kota Kinabalu and Labuan.

Petronas said in the statement that this collaboration bears testament to its continuous commitment to achieving its shared aspiration of sustainable growth for the domestic oil and gas industry.