RM120 million for Sabah from its largest crude oil cargo sale
Published on: Thursday, July 25, 2024
Five cargoes have been sold to date, generating nearly RM700 million in cumulative sales revenue. These transactions are expected to provide sustained revenue over the next 12 years, significantly bolstering the State’s economy.
Kota Kinabalu: Sabah has successfully sold its latest crude oil cargo from its 50 per cent interest in the Samarang Production Sharing Contract (PSC), securing an estimated sales revenue of RM120 million on July 23, 2024.
According to a statement by SMJ Energy Sdn Bhd (SMJE), the strategic acquisition of a 50 per cent stake in the Samarang PSC by SMJE in May 2023 has allowed Sabah to market its crude oil entitlements through the Labuan Crude Oil Terminal (LCOT).
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Five cargoes have been sold to date, generating nearly RM700 million in cumulative sales revenue. These transactions are expected to provide sustained revenue over the next 12 years, significantly bolstering the State’s economy.
“Sabah’s enhanced role in the oil and gas sector resulted from the Commercial Collaboration Agreement (CCA) signed with Petronas on December 7, 2021.
“This agreement has facilitated the State greater revenue sharing, greater say, greater participation and more substantial influence in Sabah’s oil and gas value chain.
SMJE recently announced its audited financial results for the year ending Dec 31, 2023, revealing a remarkable profit after tax of RM259 million,” said the statement.
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This is a significant turnaround from the RM7 million net loss reported the previous year, attributed mainly to the company’s start-up phase.
Key contributors to this financial success include profits from SMJE’s 10 per cent of the lucrative Petronas LNG9 Sdn Bhd (PLNG9), 25 per cent stake in the Samur petrochemical plant and consistent revenues from crude oil sales in the Samarang PSC.
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SMJE remains committed to a prudent acquisition strategy, focusing on profitable oil and gas assets across the Upstream, LNG and Downstream/ Petrochemicals sectors.
The company aims to invest in operations with strong cash flows managed by reputable operators who adhere to proven environmental, social, and governance (ESG) standards.
Sabah’s proactive oil and gas sector approach underscores its dedication to sustainable growth and economic development, leveraging its natural resources to benefit the state and its people.
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