KOTA KINABALU: The Sipitang Oil and Gas Industrial Park (Sogip) should be developed into a premier petrochemical gas and petroleum downstream activities hub in the region, says Sabah Chief Minister Datuk Seri Hajiji Noor.
He said that in order for this to be achieved, the Sabah Oil and Gas Development Corporation (SOGDC) needs to address infrastructure and land readiness among other issues if investors are to be attracted to Sogip.
“Towards this end, SOGDC needs to work hard to ensure the positive growth of Sabah's oil and gas industry and in particular, improve Sogip's position in the petrochemical cluster within the South-East Asia region aside from creating high quality jobs for the people, ” said Hajiji.
Hajiji said this in a statement on Monday (March 8) after chairing the meeting of the SOGDC board of directors meeting.
He also presented the letters of appointment to the new members of the SOGDC board of directors.
“On the state government's part, we provided funds under the Sabah Maju Jaya (SMJ) Halatuju while the Federal (government) provided funds under the 12th Malaysia Plan to address infrastructure issues at Sogip, ” said Hajiji.
Hajiji – who is also the SOGDC chairman – said that he believes that the corporation's new leadership team would be more efficient and proactive in its management.
Hajiji also said that the development of Sabah's oil and gas industry has experienced rapid growth with the discovery of deep water oil fields in its waters in the past few years.
"Improved terms in the Production Sharing Contract (PSC) by Petronas have allowed for better management of the upstream sector and enabled the country and Sabah in particular to progress in terms of its hydrocarbon resources," he said.
Hajiji assured that it was the state government's aspiration not only to boost revenue from the oil and gas sector through taxes, but also achieve inclusivity whereby people will have bigger opportunities and benefit economically from the sector in a direct or indirect manner.