Petronas Carigali Farms Out Stake in Samarang PSC
SMJ will get 50% nonoperating interest in the PSC.
Petronas Carigali has entered into a farm-out agreement (FOA) with SMJ Sdn Bhd (SMJSB), a company wholly-owned by the Sabah State Government for the sale of Petronas Carigali’s 50% of nonoperating participating interest in the Samarang Production-Sharing Contract (PSC).
Last month, Petronas Carigali and SMJSB inked a Heads of Agreement to record the parties’ agreement and confirm SMJSB’s participation in the Samarang PSC; this is superseded with the execution of the FOA.
The FOA marks the second significant development between Petronas Carigali and SMJSB following the Commercial Collaboration Agreement signed between Petronas and the Sabah State Government on 7 December 2021.
Under the FOA, Petronas Carigali will continue to be the operator of Samarang PSC with SMJSB on board as the nonoperating partner. The Samarang field, which is located 50 km off the coast of Sabah is currently producing approximately 36,000 BOED. The gas production, at 134 MMscf/D, is part of the supply for customers in Kota Kinabalu and Labuan.