From left: PETRONAS Chemicals head of strategic planning and ventures Yaacob Salim, managing director and CEO Mohd Yusri Mohamed Yusof, PETRONAS Group SVP of project delivery and technology Datuk Bacho Pilong; Sabah State Local Government and Housing Minister and Finance Minister ll Datuk Seri Panglima Haji Masidi Manjun, Sabah State Secretary Datuk Seri Panglima Sr Haji Safar Untong, and SMJ CEO Dionysia Aloysius Kibat at the signing ceremony
PETALING JAYA: Sabah will soon own a 25% stake in PETRONAS Chemicals Fertiliser Sabah Sdn Bhd (PCFSSB).
That equity stake will be acquired by the state through its wholly-owned unit, SMJ Sdn Bhd, which inked a heads of agreement with Petronas Chemicals Group Bhd
(PetChem).
“The acquisition of the equity interest in PCFSSB will give Sabah greater revenue sharing in the oil and gas (O&G) industry in the state.
“This is in addition to the recent acquisition of selected downstream gas pipeline assets and supply of natural gas contracts by Sabah Energy Corp Sdn Bhd, which makes it the largest domestic supplier and transporter of natural gas in Sabah.
“These acquisitions signify the increased participation of Sabah state government-linked companies in the O&G industry,” said SMJ’s chief executive officer Dionysia Aloysius Kibat in a statement.
The purchase price for the stake was not disclosed.
PCFSSB was established in 2011 to construct, own and operate an integrated ammonia and urea production complex in the Sipitang Oil and Gas Industrial Park in Sipitang, Sabah.
“The divestment is part of PetChem’s strategic effort to position itself as a preferred partner in shaping and delivering the aspiration of PetChem to sustain and grow the petrochemicals business in Sabah. We value the opportunity to further contribute to the development of Sabah,” PetChem managing director and chief executive officer Mohd Yusri Mohamed Yusof said.
PCFSSB has world-scale ammonia and urea production facilities which is designed to produce 1.9 million tonnes per annum of ammonia and urea, PetChem noted in its filing with Bursa Malaysia yesterday.
PetChem said PCFSSB was a key catalyst for the development of the O&G industry in Sabah since it is the largest single train ammonia and urea plant in South-East Asia, and third largest urea plant in Asia-Pacific.
Urea is used directly as fertiliser or feedstock for resins in plywood and adhesives along with other chemicals, while ammonia is mainly used as feedstock for urea or in industrial usage such as alkaline cleansers and refrigerant gas.
