Petronas signs farmout for Samarang PSC

April 5, 2023
Petronas has agreed to farmout a 50% interest in the Samarang production sharing contract to SMJ Sdn Bhd, a company wholly owned by the State Government of Sabah.

Petronas Carigali Sdn Bhd (PCSB) has agreed to farmout a 50% non-operated participating interest in the Samarang production sharing contract (PSC) to SMJ Sdn Bhd (SMJSB), a company wholly owned by the State Government of Sabah, Malaysia.

Samarang field, about 50 km off the coast of Sabah, is currently producing about 36,000 boe/d. The gas, at 134 MMscfd, is part of the supply for customers in Kota Kinabalu and Labuan.

Under the agreement, PCSB will continue as operator of the Samarang PSC.

The agreement follows a commercial collaboration agreement signed between Petronas and the State Government of Sabah in December 2021 aimed at further enhancing collaboration in developing the oil and gas industry in Sabah.