SMJ Energy thrives under agreement with Petronas in Sabah


Special adviser to SMJE Datuk Seri Lim Haw Kuang speaking during the media engagement.

KOTA KINABALU: Fledgling state-owned oil and gas company SMJ Energy Sdn Bhd (SMJE) has benefited greatly from the Commercial Collaboration Agreement (CCA) signed between Sabah and national oil company Petronas.

Since its inception in Dec 2021, SMJE has transformed into a RM5.1bil company, utilising a RM50mil grant from the state government.

This achievement is in addition to the government-linked company holding a 50% interest in the Samarang Production Sharing Contract (PSC), a 25% interest in the Samur petrochemical plant, and the successful acquisition of Sabah International Petroleum Sdn Bhd (SIP), among others.

Special adviser to SMJE, Datuk Seri Lim Haw Kuang, stated that these accomplishments would have been impossible to achieve so quickly without the CCA.

"It's an agreement between the Sabah government and Petronas, endorsed by the Federal Government; it's a very powerful agreement," he said during an SMJE media engagement on Friday (Nov 8).

The CCA, he explained, gave the company leverage in its business, especially in securing funding.

"If you asked me before (without the CCA), I'd be scratching my head. I went to Kuala Lumpur to talk to investment bankers and said ‘we are from SMJE, from Sabah’ and they said ‘who are you?’

"Now, all the investors can't wait to lend us a lot of money.

"So, what we've been doing is because we have the CCA advantage," Lim said.

Sabah and Petronas signed the landmark CCA on Dec 7, 2021, to jointly develop the oil and gas industry in the state.

With the CCA signed, the state government also announced the incorporation of SMJE, giving the state greater revenue sharing, greater say, and greater participation in the oil and gas value chain in Sabah.

Chief Minister Datuk Seri Hajiji Noor said the signing of the CCA marked a new era in Sabah's oil and gas industry, while the incorporation of SMJE is expected to help turn the state into a strong player in the industry.

On future undertakings, SMJE chief executive officer Dr Dionysia Kibat stated that the company will focus on investing in producing assets.

"We will make sure that we have a stable cash flow and also maximise whatever investment that we have at the moment," she said.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Nation

Integrity a fundamental pillar of public service, says PSD deputy DG
DPM Fadillah flags off TNB night walk and run
Kedah MB must explain why BZI pulled out of RM40bil Langkawi project, says Sg Petani MP
Pahang exceeds RM1bil in revenue collection for a third straight year
Over 200,000 visitors thronged 2TM over first two days, says Pacu
6m-deep sinkhole detected on Jalan Lojing-Gua Musang
Vietjet launches Hanoi-Kuala Lumpur route, aims to boost Asean connectivity
Cops to investigate cat abuse incident at Old Klang Road condo
Step into 'shoes' of the public for better delivery, Health Ministry sec-gen urges civil servants
Authorities seize 205kg of illicit cooking oil packs, 20kg of white sugar

Others Also Read