Sabah Formalises Acquisition of 25% Stake in PETRONAS PFLNG 3

31 October 2025

KOTA KINABALU: The Sabah State Government has formalised the acquisition of a 25 per cent equity stake in PETRONAS PFLNG 3 Sdn Bhd, further strengthening the strategic partnership between the national oil company and the state, said Chief Minister Datuk Seri Panglima Hajiji Noor.

“Not only will this move deepen the synergy between PETRONAS and Sabah, but it will also open up opportunities for similar collaborations in the future,” he said.

The acquisition was formalised today through definitive agreements signed between SMJ Energy Sdn Bhd (SMJ Energy), representing the State Government, and PETRONAS LNG Sdn Bhd, a subsidiary of PETRONAS. This follows the Heads of Agreement signing held in Kuala Lumpur on 17 July 2025, which was witnessed by the Chief Minister and PETRONAS President and Group CEO Tan Sri Tengku Muhammad Taufik.

PETRONAS PFLNG 3, also known as ZLNG, is developing a USD 3.1 billion nearshore floating liquefied natural gas (FLNG) facility at the Sipitang Oil & Gas Industrial Park (SOGIP). The facility, with a production capacity of 2 million tonnes per annum (2.0 MTPA), is expected to commence operations in the second half of 2027.

This strategic investment marks another milestone in SMJ Energy’s growing and diversified portfolio. The company currently holds a 50 per cent participating interest in the Samarang Production Sharing Contract, a 10 per cent equity interest in PETRONAS LNG 9 Sdn Bhd, and a 25 per cent equity interest in PETRONAS Chemicals Fertiliser Sabah Sdn Bhd (SAMUR). It also owns Sabah International Petroleum Sdn Bhd (SIP) in full, which operates both Floating Production Storage and Offloading (FPSO) and Floating Storage and Offloading (FSO) assets.

In addition, SMJ Energy holds free carry and back-in rights in several exploration blocks, namely SB409 (20 per cent), SB403 (20 per cent), SB306A (15 per cent) and SB306B (15 per cent).