KOTA KINABALU: The Sabah government, in partnership with Petronas and industry players, plans to double the value of oil and gas services and equipment (OGSE) contracts awarded to Sabah-based firms in 2024. Chief Minister Datuk Seri Hajiji Noor announced the initiative during the 12th Sabah Oil, Gas, and Energy Conference and Exhibition.
Hajiji emphasised the state’s commitment to local participation, targeting full employment of Sabahans in non-technical roles and at least 80% in technical positions within the OGSE sector. “This reflects our dedication to building a resilient energy ecosystem using local talent,“ he said.
The Chief Minister highlighted significant growth in contract values, from RM341 million in 2021 to over RM2 billion by the end of 2023. Sabah contributes nearly 40% of Malaysia’s oil production and 20% of its gas output, reinforcing its pivotal role in the national energy sector.
To strengthen Sabah’s position as an OGSE hub, the state government, through SMJ Energy Sdn Bhd, has acquired stakes in key projects like the Samarang PSC and Sabah Ammonia Urea plant. Sabah Energy Corporation also expanded its role as Malaysia’s largest domestic gas supplier after acquiring Petronas’ onshore gas contracts.
Hajiji acknowledged Petronas and industry partners for their support, citing the 2021 Commercial Collaboration Agreement as a key driver of progress. The state has also formed the Sabah Local Content Council and a Joint Task Force for Mandatory Sharing to ensure local firms remain competitive.
