PETRONAS Carigali Sdn Bhd and SMJ Sdn Bhd have signed a Farm Out Agreement (FOA) for the transaction of 50% of PCSB’s non-operating participating interest in the Samarang Production Sharing Contract (PSC).

The FOA is the second significant development between PCSB and SMJSB following the Commercial Collaboration Agreement (CCA) signed between PETRONAS and the Sabah State Government on 7 December 2021.

In accordance with the FOA, PCSB will continue to run Samarang PSC, with SMJSB joining as a non-operating partner. Around 36,000 barrels of oil and gas equivalent (kboe/d) are presently produced by the Samarang field, which is about 50 km off the coast of Sabah. The gas is supplied to consumers in Kota Kinabalu and Labuan at a rate of 134 million standard cubic feet per day (MMscf/d).

This partnership demonstrates PETRONAS’ ongoing dedication to achieving its shared goal of sustainable development for the country’s oil and gas sector.