KOTA KINABALU: Sabah is formulating a five-year Oil and Gas Services and Equipment (OGSE) Roadmap (2026-2030) to build a sustainable industry, says Chief Minister Datuk Seri Hajiji Noor.
He said the state government believes that a sustainable OGSE industry cannot be built solely through a rigid, top-down blueprint.
"A strong and resilient industry must be shaped through close collaboration among the government, PETRONAS and all key stakeholders, including operators, contractors, vendors, industry associations, financial institutions and training providers.
"Feedback from all stakeholders is important for the development of the five-year roadmap," he said at the inaugural OGSE Conference and Exhibition 2026 here on Thursday (June 4).
His speech was read out by Deputy Chief Minister II and state Finance Minister Datuk Seri Masidi Manjun.
Hajiji urged conference participants to use the platform to deliberate on this strategic blueprint, saying that the roadmap must be practical, industry-driven and outcome-oriented.
He said it should address the real constraints faced by local companies and provide clear pathways for growth, focusing on three critical areas: access to capital, technical upgrading, and talent matching.
Hajiji said the OGSE sector is a high-potential lever for Sabah and will enable the shift from pure resource extraction to value-added services.
"It acts as a key driver for local content development, job creation, small and medium enterprise growth and revenue diversification," he added.
The state is targeting 60% contract ownership for local OGSE vendors this year.
"To date, 393 active Sabah-based OGSE vendors have been formally recognised and vetted for their technical capabilities," Hajiji said.
He urged Sabah companies to move beyond low-margin subcontracting and become main contractors, licence holders, technology adopters and long-term value creators.
He said Sabah’s oil and gas development has made great progress since the first major discovery in 1971, and now contributes more than 40% of the country’s crude oil and approximately 20% of its natural gas production.
However, Sabah can no longer be content with merely supplying raw resources but also in equity, execution, and local ownership, as production figures alone do not build a modern and resilient economy, Hajiji said.
"We must ensure that the wealth generated from our resources creates stronger local companies, better employment opportunities, deeper technical capabilities, and wider economic spillovers across the state," he stressed.
