Sabah to sign agreement with PETRONAS for 40% stake in floating liquefied natural gas facility


KOTA KINABALU: Sabah is expected to receive a 40% stake in the floating liquefied natural gas (FLNG) facility project here under an agreement to be signed with PETRONAS soon.

Chief Minister Datuk Seri Hajiji Noor described this as one of the significant achievements resulting from the close cooperation between the state and Federal governments.

He said the milestone was also made possible through the cooperation agreement previously signed with PETRONAS, which enables the Sabah government to participate actively in the state's oil and gas industry.

He said the state would also receive a 20% stake in projects undertaken by PETRONAS at newly discovered oil and gas fields off the coast of Sandakan.

"We have successfully reached an agreement with PETRONAS and in the near future, perhaps within the next few months, we will sign an agreement under which Sabah will receive a 40% stake in the floating gas project in the state," Hajiji said in a statement.

He said PETRONAS has secured an oil and gas field in Sandakan and Sabah would receive a

20% stake.

He said Sabah is also attracting increasing investor interest due to the state government's investor-friendly policies, a fact acknowledged by foreign diplomats who visited the state to explore its investment potential.

"Nearly 40 foreign diplomats or high commissioners have met with me over the past five years. They are attracted to our investor-friendly policies. They said these policies will propel Sabah towards a better future and that is exactly what we are working to achieve," he said.

Hajiji noted that existing industrial areas, particularly the Kota Kinabalu Industrial Park (KKIP) and the Sipitang Oil and Gas Industrial Park (Sogip), are approaching full capacity due to strong investor support.

As a result, he said, the state government is expanding new industrial zones, including the Palm Oil Industrial Cluster (POIC) on the east coast and industrial parks based on the Blue Economy.

 

 

 

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