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100pc jump in Sabah OGSE participation target: Chief Minister
- SOGCE ADMIN
- Jul 5
- 3 min read
Published on: Friday, July 04, 2025
By: Larry Ralon
Kota Kinabalu: The State Government jointly with Petronas and industry partners has set a target of 100 per cent increase in Oil and Gas Services and Equipment (OGSE) contracts for Sabah companies this year, said Chief Minister Datuk Seri Hajiji Noor.
“In terms of employment, the target is clear: 100 per cent of non-technical roles and at least 80 per cent of technical roles in the OGSE sector must be filled by Sabahans.
“These targets reflect our firm commitment to strengthening local participation and building a resilient, home-grown energy ecosystem,” he said at the 12th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE), Thursday. His speech was read by State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
In 2021, Hajiji said the total contracts awarded to Sabah companies for local oil and gas services jobs stood at RM341 million, while by the end of last year, it soared to over RM2 billion 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 to that of Malaysia’s, contributing nearly 40 per cent of the country’s oil production and approximately 20 per cent of its gas output.
“However, we believe our 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 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 (SEC) 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 in Sabah.
“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. The Commercial Collaboration Agreement (CCA) signed in December 2021 with Petronas was significant and its implementation through initiatives such as the subcommittee for OGSE industry, co-chaired by the Sabah Industrial Development and Entrepreneurship Ministry and Petronas, has yielded tangible results.
“To sustain this momentum, we have established the Sabah Local Content Council under the purview of SMJ Energy and implemented a Joint Task Force for Mandatory Partnerships.
“These initiatives, coupled with the transparent insights provided by the Kinabalu Activity Outlook (KAO), are designed to ensure our local companies are well-informed, well-prepared and well-partnered for success,” he said.
“Our vision is to build a pipeline of OGSE opportunities that extends far beyond short-term contracts. We want to promote knowledge transfer, technology exchange and joint ventures that scale our local players into regional champions.
“We are laying the foundations now not just for current prosperity but for a resilient, innovative and sustainable OGSE ecosystem for generations to come.
“Hence, let us work together to ensure Sabah not only remains a key energy player but becomes a model for sustainable, inclusive growth in the oil, gas and energy industry,” he said.
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