KOTA KINABALU: A 100% increase in oil and gas services and equipment (OGSE) contracts has been set aside for Sabahan companies this year, says Datuk Seri Hajiji Noor.
The Sabah Chief Minister said the target set by the state government in collaboration with PETRONAS and industry partners has one clear objective, which is to have 100% of non-technical roles and at least 80% of technical roles in the OGSE sector to be filled by Sabahans.
“These targets reflect our firm commitment to strengthening local participation and building a resilient, homegrown energy ecosystem,” he said at the 12th Sabah Oil, Gas and Energy Conference and Exhibition at the Sabah International Convention Centre here yesterday.
State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe delivered Hajiji’s speech.
He said in 2021, the total contracts awarded to Sabahan companies for local oil and gas services jobs stood at RM341mil, but by the end of last year, the figure soared to over RM2bil for jobs awarded both in and outside Sabah.
He said Sabah’s oil and gas industry is an essential pillar of the state’s economic growth, and continues to play a pivotal role for Malaysia, contributing nearly 40% of the country’s oil production and about 20% of its gas output.
Hajiji, however, believes that Sabah’s role must extend beyond mere production.
“We aspire for Sabah to become a centre of excellence for OGSE innovation and sustainable energy practices and a hub where investment, talent and technology converge to create long-term value,” he said.
Hajiji also said the state government, through SMJ Energy, has taken decisive steps in securing equity in key upstream and downstream assets, including the Samarang PSC and the Samur petrochemical plant, as well as interests in exploration blocks SB403, SB409, SB306A and SB306B.
He said Sabah Energy Corporation has also strengthened its position as Malaysia’s largest domestic supplier and transporter of natural gas, following its successful takeover of PETRONAS’ onshore gas contracts here.
“I wish to take this opportunity to thank PETRONAS and all our operating partners in Sabah for your continuous efforts, commitment and investment in local content development,” he said.
