PMB Technology extends MOU with Sabah Oil & Gas Development Corp to explore potential land acquisition for silicon metal plant

PMB Technology extends MOU with Sabah Oil & Gas Development Corp to explore potential land acquisition for silicon metal plant

28 Mar 2023

PMB Technology Bhd has extended a memorandum of understanding (MOU) previously inked with Sabah Oil & Gas Development Corp Sdn Bhd (SOGDC) for the potential sublease or sale of 200 acres of land at the Sipitang Oil and Gas Industrial Park (SOGIP) in Sabah, and the development of a new silicon metal production plant there. 

“PMB Technology and SOGDC have mutually agreed to extend the expiration date of [the] MOU for a period of 12 months up till March 28, 2024, and all provisions contained in the MOU shall remain in full force and effect,” the group said in a bourse filing on Tuesday (March 28).  

PMB Technology — 21.2%-owned by Press Metal Aluminium Holdings Bhd — and Sabah state-owned SOGDC inked the MOU on March 30 last year.  

Back then, PMB Technology said the main objectives of the MOU were to determine and agree on the rental/price, tenure/completion period and other commercial terms for the sub-lease or sale of the land by SOGDC to PMB. 

“The MOU allows the company to explore the development and operation of a new silicon metal production plant in Sabah, with sufficient, constant and steady supply of natural gas at acceptable rates to the company, by way of a sublease/sale for the said land by SOGDC to PMB,” it said. 

SOGDC owns and manages SOGIP, which is in the process of being developed into an industrial park dedicated for oil and gas activities. 

Since after the MOU was inked, PMB Technology updated in bourse filings in May, August and November 2022, as well as February 2023, that there has been no material development on the status of the MOU between PMB Technology and SOGDC. 

PMB Technology’s share price closed a sen lower to RM4.14 on Tuesday (March 28), valuing the group at RM5.26 billion. 

Source: The Edge Markets