KUALA LUMPUR (July 24): Sabah state-owned SMJ Energy Sdn Bhd said it has sold its fifth crude oil cargo on July 23, with the latest transaction netting estimated sales revenue of RM120 million.

The latest sale, derived from SMJ Energy's 50%-owned Samarang production-sharing contract (PSC), has resulted in cumulative sales revenue of RM700 million across the five cargoes sold to date, it said.

SMJ Energy bought the 50% stake in Samarang PSC from Petronas Carigali Sdn Bhd in May last year. Its first cargo following the stake buy was sold to an international buyer in June that same year.

The crude oil entitlements were marketed through the Labuan Crude Oil Terminal (LCOT), it said.

"These transactions are expected to provide sustained revenue over the next 12 years, significantly bolstering the state's economy," SMJ Energy said.

"Sabah’s enhanced role in the oil and gas sector resulted from the Commercial Collaboration Agreement [CCA] signed with Petronas on Dec 7, 2021. 

The CCA has facilitated the state with "greater revenue sharing, greater say, greater participation, and more substantial influence in Sabah's oil and gas value chain", it added. 

"SMJ Energy remains committed to a prudent acquisition strategy, focusing on profitable oil and gas assets across the upstream, LNG, and downstream/petrochemicals sectors. 

"The company aims to invest in operations with strong cash flows managed by reputable operators who adhere to proven environmental, social, and governance [ESG] standards," it said. 

In the financial year ended Dec 31, 2023, SMJ Energy returned to profit with a profit after tax of RM259 million, from a net loss of RM7 million during the start-up period the year before. 

The profitability was mainly driven by dividends from its wholly owned subsidiary Sabah International Petroleum Sdn Bhd (SIP), largely from its 10% interest in the Petronas LNG9 (PLNG9) investment, followed by contribution from 25%-owned SAMUR petrochemical plant and the Samarang PSC.