KUALA LUMPUR, Malaysia—Petronas Carigali has signed a heads of agreement with the Sabah State Government.
This opens the path for Sabah state subsidiary SMJ Sdn Bhd (SMJSB) to acquire a 50% stake in the Samarang production sharing contract (PSC), which covers the Samarang Field 50 km offshore Sabah.
Current production from the PSC area is about 36,000 boe/d of oil and gas, with the latter sent to clients in Kota Kinabalu and Labuan.
Earlier this month Petronas and E&P Malaysia Venture signed a letter of understanding with SMJSB on a back-in option for the Block SB409 PSC, giving the Sabah State Government up to 20% on fulfilment of the work commitment or a commercial discovery, whichever comes first.
