State-owned non-operating venture, SMJ Energy, has strengthened its offshore portfolio with two new exploration deals for Blocks SB306A and SB306B off Sabah’s East Coast.

The state-owned company has secured a 15% participating right in both blocks, comprising a 7.5% Free Carry Right from INPEX and a 7.5% Back-In Right from PETRONAS Carigali Sdn Bhd (PCSB).

A Free Carry Right means SMJ Energy will not bear any exploration costs, as these will be covered by its project partners. Meanwhile, a Back-In Right allows the company to acquire a stake in the project after exploration success, without taking on the initial financial risks.

For Block SB306A, INPEX operates with a 50% stake, while PCSB holds 42.5%, and SMJ Energy retains 7.5%.

For Block SB306B, PCSB leads with a 50% stake, INPEX holds 42.5%, and SMJ Energy secures 7.5%.

SMJ Energy CEO Dr. Dionysia Kibat signed the Production Sharing Contract at the Malaysia Bidding Round 2024 (MBR2024) Award Signing Ceremony at Kuala Lumpur Convention Centre on February 17, 2025.

The latest deals mark SMJ Energy’s continued expansion, following its first Back-In Right for Block SB409 in 2023 and second Back-In Right for Block SB403 in 2024, both off Sabah’s West Coast.

The company also holds a 50% stake in the Samarang PSC Joint Venture, 25% in the SAMUR petrochemical plant, and 10% in PETRONAS LNG9 Sdn Bhd.

SMJ Energy, established in November 2021, has declared RM110 million in dividends over 2023 and 2024, cementing its role in Sabah’s energy sector. – February 18, 2025