Sabah’s first crude oil sale
Published on: Monday, July 10, 2023
Sabah will continue its efforts to gain further participation in the oil and gas industries in Sabah. - pix for illustration purposes only by Oil Price
SABAH sold its first crude oil cargo from its 50 per cent interest in the Samarang PSC on June 30, marked by the issuance of its official invoice to the crude oil buyer, Shell International Eastern Trading Company (SIETCO).The completion of its acquisition of 50 per cent participating interests in the Samarang PSC on May 31 has allowed Sabah to sell its crude oil entitlements at Labuan Crude Oil Terminal (LCOT ) to SIETCO under contract.
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This first and subsequent sales are projected to bring in continuous revenue for Sabah for the duration of the Samarang PSC.
The Samarang PSC has seven existing oil and gas-producing fields, namely Samarang, Samarang Kechil, Sumandak, Zuhal, Alab, Erb West and Kinarut, and two gas-receiving terminals in Kota Kinabalu and Labuan Island.
Petronas Carigali Sdn Bhd (PCSB) is the operator of the Samarang PSC since 1995 and has signed a supplementary PSC agreement with Petronas in 2018 to extend the PSC operations until December 31, 2035. This is another significant development after the signing of the Commercial Collaborative Agreement (CCA) between Petronas and the State Government on December 7, 2021.
On April 25 this year, SMJ Sdn Bhd (SMJSB) signed a Sales & Purchase Agreement (SPA) with Petronas Chemicals Group Bhd (PCGB) for the acquisition of 25 per cent participating interest in the Sabah Ammonia Urea (Samur) petrochemical plant.
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SMJSB had also signed a Letter of Understanding (LoU) deal on the back-in option arrangement for Block SB409 Production Sharing Contract giving the Sabah State-owned entity up to 20 per cent participating interest upon completion of the work commitment or commercial discovery, whichever is earlier.
On May 31, SMJSB completed the acquisition of 50 per cent participating interest in the Samarang PSC.
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Sabah will continue its efforts to gain further participation in the oil and gas industries in Sabah.
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