KOTA KINABALU: Finance Minister Datuk Seri Masidi Manjun has urged local Oil & Gas Services and Equipment (OGSE) companies to capitalise on emerging opportunities and enhance their competitiveness in the industry.
Masidi, who also serves as chairman of the state-owned SMJ Energy (SMJE), called on Sabahan businesses to meet Petroliam Nasional Bhd (PETRONAS) industry standards, form strategic partnerships, and build expertise to secure future contracts.
“This is not just a forecast, it is a call to action,” he said in a statement following the unveiling of the Kinabalu Activity Outlook (KAO) 2025-2027 on Thursday (March 6).
Highlighting the vast opportunities available, he stressed the need for local companies to take the lead.
“To succeed, Sabahan companies must rise to the challenge by meeting PETRONAS’ stringent standards and forging strategic partnerships that unlock new capabilities and experiences,” he added.
The KAO, jointly launched by the Sabah Government and PETRONAS on Feb 28, provides a three-year roadmap outlining upcoming upstream, downstream, gas, and maritime activities in Sabah.
It aims to empower local OGSE companies by offering key insights into future projects with PETRONAS, its subsidiaries, and other Petroleum Arrangement Contractors (PACs).
More than 200 representatives from Sabah’s OGSE sector attended the event, which introduced new growth targets for local companies.
Building on last year’s impressive growth, where contracts awarded to Sabahan businesses surged from RM613mil in 2021 to over RM2bil, the Sabah Government and PETRONAS have set ambitious targets for 2025-2027.
These include increasing local job awards for Sabahan companies by 50% to 100% and doubling the number of contracts secured by Sabah OGSE firms.
With the KAO roadmap in place, Sabah aims to further strengthen its OGSE sector, ensuring sustained economic benefits and industry expansion.
PETRONAS Group Procurement vice president Rashidah Alias reaffirmed the company’s commitment to supporting Sabah’s oil and gas industry through sustainable partnerships.
“PETRONAS is fully dedicated to fostering local industry growth. By working together, we can build a more sustainable and competitive OGSE sector that benefits all Sabahans,” she said.
Meanwhile, Industrial Development and Entrepreneurship Ministry (MIDE) permanent secretary Datuk Thomas Logijin stressed on the need for innovation and collaboration to maximise industry potential.
“This is a pivotal moment for Sabah’s OGSE sector. By leveraging the insights provided in the KAO and actively pursuing opportunities, local companies can play a greater role in shaping the state’s oil and gas future,” he said.
A key initiative supporting local industry growth is the Sabah Local Content Council, which coordinates, facilitates, and guides efforts to boost local participation.
The council, chaired by SMJE OGSE & Corporate executive director Terry Biusing, includes representatives from the government, PETRONAS, operators, and local OGSE associations.
By addressing challenges and fostering collaboration among stakeholders, the council plays a crucial role in ensuring that Sabahan businesses gain greater access to industry opportunities.
Recognising the importance of strategic partnerships, the state government and PETRONAS established a Joint Task Force (JTF) in 2024.
One of its key achievements was the implementation of mandatory partnership guidelines, requiring large, established companies to collaborate with Sabahan firms on complex, high-value projects.
This initiative aims to enhance local expertise, create more jobs, and ensure that Sabahan companies actively participate in major industry developments.
The collaboration between Sabah and PETRONAS continues to drive progress towards a more competitive, inclusive, and sustainable oil and gas industry in the state.
Through strategic initiatives, local businesses are expected to play a larger role in the sector, ensuring long-term economic benefits for Sabah.
