Kota kinabalu: The Sabah government, in collaboration with Petroliam Nasional Bhd (Petronas) and industry partners, is set to double the value of local contracts in the oil and gas services and equipment (OGSE) sector awarded to Sabah-based companies this year. Chief Minister Datuk Seri Hajiji Noor announced this target at the 12th Sabah Oil, Gas, and Energy Conference and Exhibition held at the Sabah International Convention Centre. He emphasized the plan to fill 100% of non-technical positions and at least 80% of technical roles in the OGSE sector with Sabahans.
According to BERNAMA News Agency, in 2021, Sabah-based companies were awarded contracts worth RM341 million for local oil and gas service works. By the end of the last year, this figure had increased to over RM2 billion for works awarded both within and outside the state. The Chief Minister highlighted the significant contribution of the oil and gas industry to Sabah’s economic growth, noting its role in nearly 40% of the country’s oil production and around 20% of national gas output.
Hajiji expressed the state’s ambition to position Sabah as a center for OGSE innovation and sustainable energy practices, attracting investment, talent, and technology to create long-term value. The state government, via SMJ Energy Sdn Bhd, has actively pursued equity in key upstream and downstream assets, including the Samarang PSC and the Sabah Ammonia Urea (Samur) petrochemical plant, as well as interests in exploration blocks SB403, SB409, SB306A, and SB306B.
Sabah Energy Corporation has consolidated its status as the largest domestic supplier and transporter of natural gas in Malaysia, following the acquisition of Petronas’s onshore gas contracts in Sabah. Hajiji extended his gratitude to Petronas and operating partners for their investments in local content development.
The Commercial Collaboration Agreement signed in December 2021 with Petronas has been pivotal, with initiatives such as the Subcommittee for the OGSE industry yielding tangible results. The Sabah government has also launched the Sabah Local Content Council and a Joint Task Force for Mandatory Sharing to ensure local companies are adequately informed and supported.
These efforts are complemented by the Kinabalu Activity Outlook, providing transparency and aligning local companies with the right partners to succeed in the industry.