Kuala lumpur: PETRONAS Carigali Sdn. Bhd. (PETRONAS Carigali), a subsidiary of PETRONAS, has entered into a Farm Out Agreement (FOA) with SMJ Energy Sdn. Bhd. (SMJE), a company owned by the Sabah State Government. This agreement facilitates the assignment and transfer of a 20% non-operating participating interest from PCSB to SMJE in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (2011 NSEOR PSC).

According to BERNAMA News Agency, upon completion of the transaction and fulfillment of the necessary conditions precedent, PETRONAS Carigali's non-operating participating interest will be adjusted to 30%. SMJE will acquire a 20% non-operating participating interest, while SEA-Hibiscus Sdn. Bhd. will continue as the operator, holding a 50% participating interest.