Sarawak’s oil and gas vendors secure RM49.31 billion in contracts since 2014, with 60% executed locally, boosting state economic growth.
KUCHING: Sarawak’s oil and gas services and equipment (OGSE) vendors secured contracts worth RM49.31 billion between 2014 and March this year, reflecting the growing competitiveness of local companies in the energy sector.
Sarawak Deputy Premier Datuk Amar Awang Tengah Ali Hasan said about 60% of the contracts were executed in Sarawak, ensuring that a substantial portion of the economic value generated remained within the state.
He said in the first quarter of 2026 alone (1Q 2026), 267 Sarawakian vendors secured contracts worth RM1.57 billion, representing more than 32% of the total contracts awarded in Sarawak.
“These achievements are not merely numbers, but reflect the continuous progress of Sarawak’s OGSE industry through capability development, stronger technical expertise and an unwavering commitment to excellence.
“They also demonstrate that Sarawak-based companies are becoming increasingly competitive in supporting the evolving needs of the energy industry while contributing meaningfully to Malaysia’s economic growth,” he said.
He said this in his speech at the Commemoration of Sarawak OGSE Vendors event organised by Petroliam Nasional Bhd (Petronas) here today.
Awang Tengah said the achievement was further supported by cumulative upstream investments exceeding RM310 billion as of 4Q 2025.
“These investments not only reflect continued confidence in Sarawak’s energy sector but also demonstrate the growing credibility, capability and competitiveness of Sarawak-based companies in supporting increasingly sophisticated upstream activities,” he said.
Meanwhile, Petronas senior vice-president of Malaysia Petroleum Management Datuk Bacho Pilong said the state had seen encouraging progress since 2020, with a steady upward trend in jobs awarded to Sarawak-based vendors, reflecting their growing participation and competitiveness.
“The progress we have made is evident in the number of vendors we recognise today. From just 11 vendors at the inaugural Sarawak Commemoration Day in 2022, the number has grown to 82 this year.
“This growth reflects a vendor ecosystem that is becoming stronger, more capable and increasingly trusted to undertake more complex and higher-value work,” he said.
