Sabahan firms achieved significant breakthroughs in the OGSE, says Masidi

KOTA KINABALU: Sabahan-owned companies have achieved significant breakthroughs in the oil and gas services and equipment (OGSE) industry, says state Finance Minister Datuk Seri Masidi Manjun.

Describing it as historic, Masidi announced that local companies have been awarded contracts in engineering, procurement, construction, maintenance, construction and modification, integrated wells services, and third-party logistics and marine vessel supply.

These new contracts are expected to generate approximately 1,000 job opportunities for Sabahan companies across various skill sets and disciplines.

"It is indeed a remarkable moment for Sabah because we have proven that our local companies can compete in the big leagues of OGSE," said Masidi, who is also the chairman of state-owned SMJ Energy Sdn Bhd.

Masidi expressed hope that the trend of local participation in OGSE will continue to grow, allowing more Sabahans to seize opportunities in the oil and gas industry.

The state government, through SMJE, has led strategic partnerships with experienced technical service providers, focusing on new OGSE service frontiers while maintaining cost-effectiveness, safety, quality, and project timelines.

Since the signing of the Commercial Collaboration Agreement between the Sabah State government and PETRONAS in Dec 2021, the value of local contract awards in OGSE in Sabah has increased from RM341mil to RM780mil.

The number of local contractors has grown from 263 to 475 in 2023, SMJE noted in a statement on Monday (Oct 21).

SMJ Energy’s executive director for OGSE and Corporate, Terry Biusing, announced that Sabahan companies are now securing a larger share of local OGSE contracts.

The revenue projection for Sabah OGSE companies is expected to exceed RM2bil in 2024, with over 60 companies earning between RM1mil and over RM300mil in revenue up to Aug 2024.

SMJ Energy remains dedicated to supporting Sabahan companies, collaborating closely with PETRONAS, oil and gas firms, and local contractor associations in Sabah through a newly established Local Contents Council for OGSE, chaired by Biusing.

Through increased local opportunities, strategic partnerships, and skill development, Biusing stated that Sabah is well-positioned to become a leading force in the state and national OGSE landscape.