Sabah aims to be regional OGSE hub with RM2 billion local contracts, says Masidi
- SOGCE ADMIN
- Jun 29
- 3 min read
By The Borneo Post on June 28, 2025, Saturday at 6:37 PM
KOTA KINABALU (June 28): Sabah’s oil and gas sector is poised for greater local participation and global competitiveness as the State Government intensifies its push to position Sabah as a key pillar of Malaysia’s energy security and a trusted investment destination.
Sabah Finance Minister Datuk Seri Panglima Masidi Manjun said this when addressing members of the Kadazandusun Chamber of Commerce and Industry (KCCI) and the Dayak Chamber of Commerce and Industry (DCCI), along with industry players here.
He said this when officiating the Business Opportunities and Challenges in Sabah’s Oil & Gas Industry & The Way Forward forum organised by KCCI on Saturday.
“It is a privilege to stand before such an influential gathering of business leaders today,” he said, describing the oil and gas industry as the backbone of Sabah’s economy.
Masidi highlighted that Sabah consistently contributes nearly 40 per cent of the nation’s oil and close to 20 per cent of its gas, resources he described as “untapped potential, strategic relevance, and the opportunity to position Sabah as a central pillar of Malaysia’s long-term energy security.”
However, he stressed that recognising this potential was only the beginning.
“The real challenge lies in turning it into meaningful outcomes, especially for Sabahan vendors who have long sought greater access and participation,” he said.
Masidi said this was why the State Government, working closely with Petronas under the proactive leadership of SMJ Energy, has been driving initiatives since the signing of the landmark Commercial Collaboration Agreement (CCA) in December 2021.
“The agreement not only affirmed Sabah’s rightful role in shaping its energy future but also established a joint coordination committee focusing on upstream activities, domestic gas supply, equity participation, development of the Oil and Gas Services and Equipment (OGSE) industry, human capital and CSR,” he said.
He noted that under Sub-Committee 4 (SC4) on OGSE development, Sabahan companies were awarded jobs exceeding RM2 billion in 2024, a three-fold increase from previous years.
“This reflects growing confidence in local capabilities,” he said, adding that the Sabah Local Content Council, chaired by SMJ Energy Executive Director Terry Biusing, has been instrumental in coordinating efforts between the State, Petronas, industry operators and local associations.
Looking ahead, Masidi said Sabah aims to position itself not only as a production hub but also as a regional centre of excellence for OGSE innovation and sustainable energy practices.
“We are open for business, transparent, and aligned with the State’s development blueprint. New players like ConocoPhillips, INPEX, Dialog Group and others are welcome alongside existing operators,” he said.
He said the State Government wants investors to see Sabah not just as a resource base, but as “a strategic hub to grow their business, form lasting partnerships, and build local OGSE capabilities.”
Masidi also called on local businesses to match the government’s commitment with action.
“Our unwavering commitment to prioritising Sabahan companies remains paramount. But this requires reciprocal dedication from local businesses – to actively invest in enhancing capabilities, forge strategic partnerships, and embrace innovation,” he stressed.
He urged the Chambers of Commerce, especially KKCCI and DCCI, to “be bold, be visionary, and be future-ready” by leveraging collective strength and encouraging joint ventures and consortia to bid for larger, more complex projects.
“This is how we collectively create greater value and unlock unprecedented growth,” he said.
Masidi concluded with a rallying call to industry leaders: “Let us work together to usher in a new chapter for Sabah’s oil and gas industry – one defined by greater empowerment, genuine inclusivity, and meaningful local participation, all without compromising on safety, technical standards, quality, costs, or schedule.
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