The State of Sabah, through its wholly-owned company SMJ Sdn Bhd (SMJSB), and PETRONAS Chemicals Group Berhad (PCG) have signed a Share Purchase Agreement (SPA) for the acquisition of 25% equity interest in PETRONAS Chemicals Fertiliser Sabah Sdn Bhd (PC FSSB) for a value of RM1.2 billion.
The agreement was signed by SMJSB Chief Executive Officer Dr. Dionysia Aloysius Kibat and PCG Managing Director and Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof.
“The SPA signing provides the opportunity for further collaboration and I am happy at the speed with which this agreement has concluded,” said Dr. Dionysia.
“This opportunity will further strengthen our working relationship between PCG and the State of Sabah and unlock potential for similar collaborations in the future. We are also confident that this collaboration will further spur the development within the Sipitang Oil and Gas Industrial Park (SOGIP), creating more economic benefits to the bigger surrounding communities in Sabah,” said Ir. Mohd Yusri.
PC FSSB was established in 2011 to construct, own and operate an integrated ammonia and urea production complex in SOGIP in Sipitang, Sabah. PC FSSB has world-scale ammonia and urea production facilities, designed to produce 1.9 million metric tonne per annum of ammonia and urea. It is the largest single train ammonia and urea plant in Southeast Asia, and third largest urea plant in Asia Pacific. It occupies 211 acres of land in SOGIP, with close proximity to key growth markets in Asia Pacific.
PC FSSB is a key catalyst for the development of oil and gas industry in Sabah through SOGIP. It is the first fertiliser plant built in Sabah. Urea is used directly as fertiliser or feedstock for resins in plywood and adhesives, and other chemicals. Ammonia is mainly used as feedstock for urea, or for industrial use in applications such as alkaline cleansers and refrigerant gas.
