Kuala lumpur: Sabah has been granted broader participation in the oil and gas industry value chain, marking a significant development in the region’s economic engagement. This advancement includes active involvement by state-owned companies such as SMJ Energy Sdn Bhd (SMJE) through the Commercial Collaboration Agreement (CCA).

According to BERNAMA News Agency, Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Azalina Othman Said, highlighted the strengthened strategic collaboration between Petronas and the Sabah state government with the signing of the CCA on December 7, 2021. As of the first quarter of 2025, a total of 326 Sabah-based companies have been licensed and registered as Petronas vendors.

Azalina revealed that following the CCA signing in 2021, the value of contracts awarded to these companies increased from RM613 million to RM2 billion as of 2024, reflecting a 3.3-fold rise. This information was provided in a written reply to a parliamentary question published on the Dewan Rakyat portal. The question was posed by Datuk Seri Jeffrey Kitingan (GRS-Keningau), seeking clarification on the timeline for implementing agreements related to Sabah’s oil and gas rights and revenue sharing with the government and Petronas.

Azalina assured that Petronas remains committed to enhancing Sabah’s participation progressively, with emphasis on technical feasibility and sustainable commercial terms. She further emphasized that this comprehensive development underscores the increased participation and commercial benefits that Sabah enjoys in the national oil and gas industry, aligning with the cooperation framework established through the CCA.