Petronas, Sabah state sign farm out deal for Samarang PSC
Petronas Carigali, a wholly-owned subsidiary of Malaysian state-owned energy company Petronas, has entered into a farm out agreement with Sabah state-owned SMJ for the sale of its 50% stake in the Samarang production sharing contract (PSC), Petronas said on April 5.
Under the agreement, Petronas Carigali will continue to be the operator of Samarang PSC with SMJ on board as the non-operating partner. The Samarang field, which is located approximately 50 km off the coast of Sabah, is currently producing approximately 36,000 barrels of oil and gas equivalent/day.
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The gas, at 134mn ft3/day is part of the supply for customers in Kota Kinabalu and Labuan.
Last month, the parties had inked a heads of agreement to record the agreement and confirm SMJ’s participation in the Samarang PSC, and this is superseded with the execution of the farm out agreement.