Under an agreement signed in Kuala Lumpur today, SMJE will assume a 20% non-operating partner interest from Petronas Carigali Sdn Bhd (PCSB).

SEA Hibiscus Sdn Bhd will continue as the operator with a 50% participating interest while PCSB retains the remaining 30%.

The move is expected to raise SMJE’s crude entitlement, increasing its cargo liftings from 4.7 in 2025 to 7.0 in 2026, enhancing revenue streams and supply reliability for Sabah.

Sabah chief minister Hajiji Noor said the acquisitiion reflects the state government’s long-term strategy to strengthen the state’s energy sector through high-quality investments and close collaboration with the national oil company.

“With opportunities now expanding across the state from the west to the east coast, we welcome reputable investors to partner with us in ensuring sustainable and lasting benefits for the people of Sabah,” he said after witnessing the exchange of documents.

SMJE chairman Masidi Manjun said North Sabah is a strategic production asset, and the company’s participation signals a maturing role for the state in upstream activities.

“This move secures long-term value, builds commercial capability, and ensures more benefits flow directly to the people of Sabah,” Masidi, who is also the deputy chief minister, said.

The North Sabah oil recovery production sharing contract includes four producing oil fields located in shallow waters, 70m deep, off Kota Belud.