Long-term certainty for Sabah oil and gas assets under new land deal
Published on: Wednesday, October 14, 2026
By: Larry Ralon
Kota Kinabalu: The signing of land lease agreements for the Sabah Oil and Gas Terminal (SOGT) and the Sabah-Sarawak Gas Pipeline (SSGP) between Sedco and Petronas will provide long-term operational certainty for both strategic energy facilities.
Speaking at the signing ceremony on Wednesday, Malaysia Petroleum Management (MPM) senior vice president Datuk Bacho Pilong (pic) said the pact ensures the planning, maintenance, and continuity of operations for facilities that are expected to function for up to 50 years.
He said the sustained operations of SOGT and SSGP are vital for Sabah’s economic growth, supporting the state’s energy value chain and driving downstream industrial activities such as power generation and petrochemicals.
Reliable gas infrastructure also anchors broader economic ventures, including supply to the Kimanis Power Plant and the proposed eSteel manufacturing project at the Sipitang Oil and Gas Industrial Park (Sogip) slated for around 2027.
Bacho added that ongoing cooperation under the Commercial Collaboration Agreement (CCA) between Petronas and the State Government aims to turn Sabah’s resource base into tangible investments, vendor development, and employment opportunities for Sabahans.
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