KUALA LUMPUR: PETRONAS Carigali Sdn Bhd has entered into a farm out agreement (FOA) with Sabah state unit SMJ Sdn Bhd for the sales of the former's 50% non-participating interest in the Samarang Production Sharing Contract (PSC).
In a statement, PETRONAS said the FOA supersedes the heads of agreement signs between PETRONAS Carigali and SMJ last month.
Under the FOA, PETRONAS Carigali will continue to be the operator of Samarang PSC with SMJ on board as the non-operating partner.
The Samarang field, which is located approximately 50km off the coast of Sabah is currently producing about 36,000 barrels of oil and gas equivalent per day (kboe/d).
The gas, at 134 million standard cubic feet per day (MMscf/d) is part of the supply for customers in Kota Kinabalu and Labuan.
According to PETRONAS, this collaboration bears testament to its continuous commitment to achieving its shared aspiration of sustainable growth for the domestic oil and gas industry.
The FOA marks the second significant development between PETRONAS Carigali and SMJ following the Commercial Collaboration Agreement (CCA) signed between PETRONAS and the Sabah state government on Dec 7, 2021.
