By WU VUIDE
KOTA KINABALU: A new partnership under the North Sabah Enhanced Oil Recovery Production Sharing Contract (EOR PSC) marks a further step in strengthening Sabah’s position in the energy sector, said Finance Minister Datuk Seri Masidi Manjun.
Masidi said the collaboration involving SMJ Energy, Petronas Carigali and Hibiscus Petroleum Berhad reflects a growing track record of cooperation built on trust and shared objectives.
He said the partnership followed a structured process that began about two years ago, starting with discussions and leading to the signing of the Heads of Agreement (HOA) in November 2025, the Farm Out Agreement (FOA) in February, and the Joint Operating Agreement (JOA) on March 31, 2026.
“This partnership did not happen overnight. Each step reflects a shared intention to move forward together in a practical and constructive way,” he said at the North Sabah EOR PSC New Partnership Evening at a hotel.
Masidi noted that SMJ Energy had previously worked with Petronas Carigali under the Samarang PSC, which began in April 2023, and described the latest venture with Hibiscus Petroleum as a new chapter in Sabah’s oil and gas sector.
Under the arrangement, Hibiscus Petroleum will serve as the operator, while SMJ Energy and Petronas Carigali will participate as non-operating partners.
He said the collaboration would create opportunities to further develop Sabah’s energy resources while ensuring tangible benefits for the state and its people.
“At the same time, partnerships like this work best when there is openness, mutual respect and a willingness to listen and adapt,” he said.
Masidi added that such engagements also help strengthen working relationships among stakeholders and foster closer cooperation beyond formal settings.
He expressed hope that the partnership would encourage greater collaboration and teamwork among all parties involved.
Also present was the Malaysia Petroleum Management represented by Datuk Bacho Pilong.
Masidi with the Malaysia Petroleum Management and guests.
