Sabah launches local content council to boost participation in oil and gas sector

KOTA KINABALU: Sabah launches the Sabah Local Content Council to boost local participation in the oil and gas services and equipment (OGSE) sector.

The council is the result of a collaboration between the Sabah government, PETRONAS, and state industry players.

State Finance Minister Datuk Seri Masidi Manjun said Sabahan companies saw a 40% increase in revenue from OGSE-related jobs from 2022 to 2023.

He said the trend continued in 2023, with RM1.5bil worth of OGSE work awarded to local companies.

Masidi, also chairman of state-owned SMJ Energy Sdn Bhd, said Sabah and PETRONAS have agreed to award 30% of all OGSE spending within Sabah to qualified Sabahan companies this year.

"They aim to achieve an 80% Sabahan employment rate within the OGSE industry for the year," he said in a statement here on Saturday (May 18).

He said this after presenting certificates of appointment to members of the newly formed council.

The council would serve as a platform for industry players, PETRONAS, Petroleum Arrangement Contractors (PACs)/PETRONAS Operating Units (OPUs), and Sabah OGSE associations.

It is chaired by Terry Biusing, SMJ Energy's OGSE and Corporate executive director.

The membership includes representatives from government bodies, PETRONAS and its group of companies operating in Sabah, prominent oil and gas companies like PTTEP Sabah, Hibiscus Petroleum Berhad, Shell and Kebabangan Petroleum Operating Company, as well as local OGSE player associations such as the Sabah Oil and Gas Services Council and Persatuan Kontraktor Petroleum Bumiputera Sabah.

The council aims to improve collaboration among industry players and advocate fair tender practices.

It also provides skills development programmes, monitoring progress to ensure transparency and measure the initiative's success.

The council also wants to make it easier for Sabahan companies to secure OGSE contracts,