KOTA KINABALU: Sabah has formalised the acquisition of a 25 per cent equity stake in PETRONAS PFLNG 3 Sdn Bhd, marking another milestone in the growing partnership between the state government and national oil company Petroliam Nasional Berhad (PETRONAS).
Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said the move not only strengthens collaboration between PETRONAS and Sabah but also opens doors for similar ventures in the future.
“This acquisition will further enhance synergy between PETRONAS and the state, while unlocking new opportunities for future cooperation,” he said in a statement.
The acquisition was completed through SMJ Energy Sdn Bhd (SMJ Energy), Sabah’s state-owned energy company, which signed definitive agreements with PETRONAS LNG Sdn Bhd, a subsidiary of PETRONAS, to formalise the purchase of the 25 per cent stake in PETRONAS PFLNG 3 Sdn Bhd — also known as ZLNG.
This development follows the Heads of Agreement (HoA) signed on July 17, 2025, witnessed by Hajiji and PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik in Kuala Lumpur.
The USD3.1 billion nearshore floating liquefied natural gas (FLNG) facility is currently being developed at the Sipitang Oil and Gas Industrial Park (SOGIP). Designed with a production capacity of 2 million tonnes per annum (2.0 MTPA), the project is expected to begin operations in the second half of 2027.
The investment adds to SMJ Energy’s rapidly expanding and diversified portfolio, which includes:
50% participating interest in the Samarang Production Sharing Contract,
10% equity stake in PETRONAS LNG 9 Sdn Bhd,
25% interest in PETRONAS Chemicals Fertiliser Sabah Sdn Bhd (SAMUR), and
Full ownership of Sabah International Petroleum Sdn Bhd (SIP), which operates both FPSO and FSO assets.
SMJ Energy also holds free carry and back-in rights in several exploration blocks, namely SB409 (20%), SB403 (20%), SB306A (15%), and SB306B (15%) — positioning Sabah for greater participation in upstream oil and gas ventures.
The Chief Minister said the strategic investment underscores Sabah’s commitment to enhancing state participation in the oil and gas sector under the Sabah Maju Jaya (SMJ) development agenda.
–Ends.
Add Comment