Latest news with #SamarangProductionSharingContract
Daily Express
25-07-2025
- Business
- Daily Express
SMJ Energy secures RM94 million from its latest crude oil sale
Published on: Friday, July 25, 2025 Published on: Fri, Jul 25, 2025 Text Size: SMJ Energy's operations are aligned with the Sabah State Government's vision to promote economic growth, expand local participation in the energy industry, and transition towards a sustainable energy future. Kota Kinabalu: Sabah Maju Jaya (SMJ) Energy continues to deliver strong returns for Sabah, recording RM94 million from its 10th crude oil sale under the Samarang Production Sharing Contract (PSC), bringing its total estimated revenue to RM1.9 billion since acquiring a stake in the offshore asset. The State-owned energy company secured a 50 per cent participating interest in the Samarang PSC on May 31, 2023, and has since recorded consistent gains, including RM397 million in 2025 alone through strategic sales of crude oil and gas. Located offshore Sabah, the Samarang PSC not only contributes significantly to the state's income but also plays a vital role in supplying gas to the Kota Kinabalu Industrial Park (KKIP) and three nearby gas-powered plants. In a statement Thursday, SMJ Energy said the successful series of sales reinforces its role as a key driver of Sabah's energy sector and economic development. 'The continuous revenue stream from Samarang reflects our long-term commitment to delivering sustainable value to the State,' it said. SMJ Energy's operations are aligned with the Sabah State Government's vision to promote economic growth, expand local participation in the energy industry, and transition towards a sustainable energy future. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
24-07-2025
- Business
- Borneo Post
SMJ Energy secures RM 94 million in revenue from crude oil sale
KOTA KINABALU (July 24): SMJ Energy on Thursday announced the successful 10th sale of its crude oil from its Samarang Production Sharing Contract (PSC), generating an estimated RM 94 million in revenue. This latest transaction further solidifies the company's commitment to generating long-term, sustainable value from its operations. Since acquiring a 50% participating interest in the Samarang PSC on May 31, 2023, SMJ Energy's robust performance in the market continues to yield impressive results. Cumulatively, the company has generated an estimated RM1.9 billion in revenue to date, or RM397 million since early 2025 through strategic sales of its crude oil and gas from Samarang PSC. Samarang PSC, located offshore Sabah, is expected to provide continuous and significant revenue streams to SMJ Energy. Samarang PSC also produces and supply gas to Kota Kinabalu Industrial Park (KKIP) and three gas power plants in and around Kota Kinabalu, Sabah. The sale of crude oil from the Samarang PSC reinforces SMJ Energy's position as a key player in Sabah's energy sector. The company's operations support the Sabah State Government's goals of driving economic growth, strengthening local content development, and advancing a sustainable energy future.
Daily Express
24-07-2025
- Business
- Daily Express
SMJ Energy earns RM94m from tenth Samarang oil sale
Published on: Thursday, July 24, 2025 Published on: Thu, Jul 24, 2025 Text Size: KOTA KINABALU: SMJ Energy has recorded an estimated RM94 million in revenue from its tenth crude oil sale under the Samarang Production Sharing Contract (PSC). The latest sale brings the company's total cumulative revenue from the Samarang PSC to around RM1.9 billion since its 50 per cent acquisition in May 2023. Of the total, approximately RM397 million was generated this year alone through its crude oil and gas sales. Located offshore Sabah, the Samarang PSC also supplies gas to the Kota Kinabalu Industrial Park and three nearby power plants. SMJ Energy said its continued operations align with the State Government's goal of promoting economic growth and a sustainable energy future. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
09-07-2025
- Business
- Daily Express
SMJ Energy clarifies: Decision not to participate in the bidding exercise for Mutiara Cluster
Published on: Thursday, July 10, 2025 Published on: Thu, Jul 10, 2025 Text Size: SMJ Energy said it will continue pursuing strategic acquisitions and partnerships in line with this disciplined investment framework, with further announcements expected in due course. Kota Kinabalu: SMJ Energy on Wednesday clarified its decision not to participate in the recent bidding exercise for the Mutiara Cluster, citing prudent financial strategy and risk management aligned with Sabah's long-term oil and gas objectives. The State-owned energy company said in a statement that its current investment focus is guided by the Sabah Government's priority of securing greater revenue-sharing and stronger participation in the State's oil and gas sector, as outlined under the landmark Commercial Collaboration Agreement (CCA) signed with national oil company Petronas. 'Since its establishment, SMJ Energy has evolved into a company valued at RM5 billion, with equity holdings in several high-value and cash-generating assets,' said the statement. These include a 50 per cent stake in the Samarang Production Sharing Contract (PSC), 10pc in LNG9, and 25pc in the Samur petrochemical plant, all of which are profitable ventures with proven returns. Despite being a relatively young company, SMJ Energy has declared dividends totalling RM160 million in under three years of operation, reflecting the strong performance of its asset portfolio. The company emphasised that oil and gas is a high-investment, high-risk business. 'Exploration failures can result in losses amounting to hundreds of millions, or even billions,' it said. Given the State's financial limitations and competing development priorities, SMJ Energy said it is taking a cautious and responsible investment approach, focusing on acquiring proven, revenue-generating assets operated by reputable partners with strong environmental, social and governance (ESG) credentials. For exploration prospects, SMJ Energy prefers to minimise risk through mechanisms such as 'free carry' and 'back-in rights', allowing the company to participate only after successful discoveries have been made, without upfront exposure to the high cost and risk of initial exploration. 'To date, SMJ Energy holds free carry and back-in rights in blocks SB409 (20pc), SB403 (20pc), SB306A (7.5pc) and SB306B (7.5pc),'said the statement. As for the Mutiara Cluster, SMJ Energy said it is classified as a Discovered Resource Opportunity (DRO), which would require substantial exploration and development investment without any guarantee of commercial success. 'Such prospects are not a current priority for SMJ Energy,' said the company, adding that under the CCA, it reserves the right to acquire DRO assets from Petronas once they are successfully developed and de-risked. The company said this approach reflects its broader strategy of managing risk while building a balanced and profitable portfolio across upstream oil and gas, liquefied natural gas (LNG) and petrochemicals, all while remaining mindful of Sabah's overall fiscal priorities. SMJ Energy said it will continue pursuing strategic acquisitions and partnerships in line with this disciplined investment framework, with further announcements expected in due course. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
14-05-2025
- Business
- Daily Express
Latest SMJ Energy crude oil sale generates RM92 million
Published on: Thursday, May 15, 2025 Published on: Thu, May 15, 2025 Text Size: The company's Samarang Production Sharing Contract (PSC), an offshore asset located in Sabah waters, continues to be a reliable revenue source for the energy provider. Kota Kinabalu: SMJ Energy Sdn Bhd (SMJ Energy) completed its ninth crude oil lifting operation at the Labuan Crude Oil Terminal, generating approximately RM92 million in sales revenue. The latest sale brings SMJ Energy's total oil and gas revenue to roughly RM1.7 billion since operations began, with RM158 million generated in 2025 alone. The company's Samarang Production Sharing Contract (PSC), an offshore asset located in Sabah waters, continues to be a reliable revenue source for the energy provider. The Samarang field serves as the exclusive natural gas supplier to Kota Kinabalu Industrial Park and powers three gas plants in the Kota Kinabalu area. Additionally, the field supplies natural gas to Labuan, providing essential energy to the Labuan Methanol Plant and the SESB Power Plant on the island. SMJ Energy continues to explore further optimisation opportunities within the field to enhance output and maximize returns. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
