Sapura Energy Berhad announced that it had entered into a Conditional Funding Agreement with Malaysia Development Holding Sdn Bhd, under which MDH will secure RM1.1 billion in nominal value of redeemable convertible loan stocks in the company.

MDH, a special purpose vehicle of Ministry of Finance (Incorporated), has specified that proceeds of the subscription are only intended to be used for the settlement or payment of liabilities owed by the SEB Group to Malaysian service providers operating in or supporting the oil and gas sector in Malaysia.

SEB Group Chief Executive Officer Muhammad Zamri Jusoh said, "As a Malaysian company supporting over 2,000 local vendors, we recognise our responsibility to preserve the Malaysian oil and gas ecosystem. Our Malaysian vendors are predominantly small & medium enterprises ("SME") who have endured significant financial hardship during and after the COVID-19 pandemic and it had always been our intention to fully settle overdue payables to them. We are extremely grateful to MDH for providing this funding, which will allow us to fulfil our commitment to our Malaysian vendors."

The group aims to use the funds to settle creditors including small businesses and financial institutions.

"We are diligently working on a robust Regularisation Plan, which will bring us one step closer to exiting our status as a PN17 company", Zamri added. "We see SEB's turnaround as part of the revitalisation of the Malaysian OGSE sector, ensuring it is better positioned to support the nation's energy security and sustainability goals, ultimately contributing to Malaysia's economic development."