KOTA KINABALU: Sabah has sold its first crude oil cargo from its 50 per cent interest in the Samarang PSC today, marked by issuance of its official invoice to the crude oil buyer, Shell International Eastern Trading Company (SIETCO).
The completion of its acquisition of 50 per cent participating interests in the Samarang PSC on 31 May 2023 has allowed Sabah to sell its crude oil entitlements at Labuan Crude Oil Terminal (LCOT) to SIETCO under contract.
This first and subsequent sales are projected to bring in continuous revenue for Sabah for the duration of the Samarang PSC.
The Samarang PSC has seven existing oil and gas producing fields namely Samarang, Samarang Kechil, Sumandak, Zuhal, Alab, Erb West and Kinarut, and two gas receiving terminals in Kota Kinabalu and Labuan Island.
PETRONAS Carigali Sdn Bhd (PCSB) is the operator of the Samarang PSC since 1995 and has signed a supplementary PSC agreement with PETRONAS in 2018 to extend the PSC operations until 31 December 2035.
This is another significant development after the signing of the Commercial Collaborative Agreement (CCA) between PETRONAS and the Sabah State Government on 7 December 2021.
On 25 April 2023, SMJ Sdn Bhd (SMJSB) had signed a Sales & Purchase Agreement (“SPA”) with PETRONAS Chemicals Group Bhd (PCGB) for the acquisition of 25 per cent participating interest in the Sabah Ammonia Urea (SAMUR) petrochemical plant.
SMJSB had also signed a Letter of Understanding (“LoU”) deal on the back-in option arrangement for Block SB409 Production Sharing Contract giving the Sabah State owned entity up to 20 per cent participating interest upon completion of the work commitment or commercial discovery, whichever is earlier.
On 31 May 2023, SMJSB had completed the acquisition of 50 per cent participating interest in the Samarang PSC.
Sabah will continue its efforts to gain further participation in the oil and gas industries in Sabah.