New oil and gas project in Sipitang expected to create 1,600 jobs

KOTA KINABALU: A collaboration between Sabah Oil and Gas Development Corporation Sdn Bhd (SOGDC) and London-based E.A Gibson Shipbrokers Ltd (Gibson) is set to benefit locals from its spillovers.

SOGDC chairman Datuk Seri Abdul Rahman Dahlan announced this at the signing of a cooperation agreement between the two companies to develop oil and gas facilities at Sabah’s southwestern Sipitang Oil and Gas Industrial Park (Sogip).

Chief executive officer Datuk Harun Ismail signed on behalf of SOGDC, while Gibson was represented by its managing director, Roger David Harrison.

The agreement, witnessed by Chief Minister Datuk Seri Hajiji Noor, establishes a robust framework for jointly exploring investment opportunities and advancing the project within Sogip.

A feasibility study for the proposed project is ongoing and construction is expected to be completed within three years.

“We aim to include local players and experts in the construction, creating an estimated 1,600 job opportunities for Sabahans during the construction phase, which will have a positive economic and social impact on the people of Sabah," said Abdul Rahman.

The development will include the construction of a purpose-built jetty, onshore hydrocarbon storage terminals, and a custom-designed floating power plant.

A Liquefied Natural Gas (LNG) bunkering operation and LNG shuttle vessels will also be included.

"With an estimated initial trade volume of two million metric tonnes of LNG per annum, 600,000 tonnes of Liquefied Petroleum Gas (LPG) per annum, 150,000 tonnes of ammonia per annum, and five million barrels of crude oil per annum, the influx of marine traffic and foreign traders in SOGIP will mark a new chapter, establishing it as an international trading hub while providing international exposure and permanent job opportunities for the people of Sabah.

"The Floating Storage Regasification and Power Production Unit (FSRP), a component of this project, is also expected to strengthen the power supply in Sogip while supporting Sabah’s grid," said Abdul Rahman.

He further noted that the proposed FSRP technology would produce a by-product of water, providing additional solutions to future water needs in Sogip and Sipitang.

To ensure reliable feedstock supply for the project, SOGDC and Gibson have signed a Memorandum of Understanding (MoU) with Aramco Trading.

"EA Gibson Shipbrokers' experience in the maritime and shipping industry is invaluable, and SOGDC is excited about the opportunities ahead. As for Aramco Trading, your global leadership in energy trading is unmatched, and we are confident our partnership will bring new growth and prosperity.

"Today, we are not just signing an agreement and MoU; we are building a future based on mutual respect, shared goals, and a commitment to excellence. This collaboration shows what can be achieved when industry leaders work together," said Abdul Rahman.

Meanwhile, Harun said the collaboration with Gibson and its global clientele would unlock energy availability for domestic and international markets, positioning SOGIP as one of the key hubs in the region.

Gibson are London-based shipbrokers with over 130 years of experience advising international clients, primarily in the oil and gas sector.

SOGDC is a Sabah state government agency under the direct purview of the State Ministry of Industrial Development and Entrepreneurship (MIDE).