New petroleum storage and refining plant in Sipitang to bring RM15.5b in investments, create 5,000 jobs, says Sabah CM
By Julia Chan
Tuesday, 18 Feb 2025 7:13 PM MYT
KOTA KINABALU, Feb 18 — The construction of a petroleum storage and refining plant at the Sipitang Oil and Gas Industrial Park (SOGIP) is set to start in April.
Chief minister Datuk Seri Hajiji Noor said the plant is owned by Petroventure Energy Sdn Bhd and is expected to solidify Sabah’s position as a regional key player in the oil and gas industry.
“The project will involve building a refinery with a capacity of up to 150,000 barrels per day (BPD) and oil storage facilities capable of holding 3 million cubic meters of crude oil and refined petroleum products.
Spanning over 400 acres at SOGIP, the project is expected to attract over US$3.5 billion (RM15.5 billion) in foreign direct investment (FDI) and create nearly 5,000 job opportunities for Sabahans.
“During the construction phase, over 3,000 workers will be needed, while the operational phase will require more than 1,000 permanent employees.
“All these developments signal positive progress in our efforts to create job opportunities for the people. I consistently emphasise the importance of prioritising Sabah’s workforce in all projects and operations in the state,” said Hajiji.
He added, “I urge all industry players to adhere to this fundamental requirement as a key principle in our commitment to local development
The project will also include the development of a jetty, oil refining facilities, a petroleum testing laboratory, and an administrative building.
Hajiji expressed confidence that the various environmental studies conducted by Petroventure, including the Environmental Impact Assessment (EIA), will ensure that the project is developed sustainably, in line with industry requirements and the state government’s commitment to environmental conservation.
Hajiji also said that SOGIP has attracted numerous high-impact investments, including Esteel’s phased RM20 billion investment in a Green Steel plant.
Recently, an RM8.88 billion energy, oil and gas hub project — a collaboration between Sabah Oil and Gas Development Corporation (SOGDC), which manages SOGIP and Gibson Shipbrokers Limited — was announced.
Comments