Sabah Reaffirms Commitment to SAMUR Ownership and Regional Growth

27 May 2026

KOTA KINABALU: SMJ Energy Sdn Bhd, the wholly owned energy investment vehicle of the Sabah State Government, today issues this statement to definitively reaffirm the significance of Sabah’s entry into and ownership of PETRONAS Chemicals Fertilizer Sabah Sdn Bhd (PCFSSB), commonly known as the Sabah Ammonia Urea (SAMUR) project.

Through SMJ Energy, the Sabah State Government holds a 25% equity stake in SAMUR, the company responsible for owning and operating the SAMUR complex under a Commercial Collaboration Agreement (CCA) with the national oil company.

Since the signing of the Share Purchase Agreement (SPA) on 25 April 2023, Sabah has consistently received financial returns from its strategic equity participation in SAMUR. These dividends are directly channelled into state coffers via SMJ Energy, benefitting the people of Sabah.

“To suggest that Sabah receives ‘less than what is due’ from SAMUR is unfounded, as it disregards the State Government’s proactive approach, favourable commercial terms, and strategic decisions that secured Sabah’s ownership in one of the region’s most vital petrochemical assets,” SMJ Energy stated.

SAMUR is recognised as the largest single-train granular fertiliser facility in Southeast Asia and the third-largest fertiliser plant in the Asia-Pacific region. Built on Sabah’s soil and powered by Sabah gas, the project has established Sabah as a key player in the regional fertiliser and petrochemical industry.

The positive impact of SAMUR extends far beyond the plant itself. The Sipitang Oil and Gas Industrial Park (SOGIP), with SAMUR as its flagship project, has attracted significant investments and created substantial employment opportunities for Sabahans across various sectors, including engineering, logistics, infrastructure, housing, hospitality, and technical services. These benefits are expected to grow further over time.

These developments represent long-term, place-based growth that is increasingly felt across communities in Sipitang and the wider region.

SMJ Energy reaffirmed that the Sabah State Government remains committed to pursuing strategic investments and strengthening partnerships with PETRONAS and other industry players, ensuring Sabah’s natural resources continue to generate sustainable economic benefits and long-term value for the people of Sabah.