Sabah’s strategic edge in oil & gas
- SOGCE ADMIN
- Jul 8, 2025
- 2 min read
Published on: Tuesday, July 08, 2025
By: Sherell Jeffrey
Kota Kinabalu: Panel speakers pointed out several key advantages that position Sabah as an ideal energy hub, namely its rich natural resources, strategic location, established infrastructure and geographic advantages.
Sabah produces notable quantities of oil and gas, with substantial proven reserves still to be developed. The State currently supplies 80 per cent of its electricity from gas.
“Proximity to high-growth Asian markets makes Sabah an ideal location for energy exports. The interesting thing with gas, unlike oil, is that the price of gas is very determined by proximity to the market,” said ConocoPhillips Malaysia General Manager Ian Lim.
“The price of gas in the Henrika in the US is multiple times lower than the price of gas in Tokyo,” he said at the recent Sabah Oil, Gas and Energy Conference and Exhibition 2025 (SOGCE) Executive Plenary Session.
The speakers also noted that decades of oil and gas development have created a robust infrastructure network that can support expanded operations.
“Sabah’s extensive biodiversity and forestry serve as natural carbon sinks, making it valuable for carbon offset programs and environmental initiatives,” they said.
The employment prospects for Sabahans in the energy sector are especially promising, with thousands of job opportunities across sectors.
“Mainly the operation and maintenance part of the operations is key,” said Mohamed Sabri, referring to recent agreements signed at the conference.
“If tomorrow there is another Floating Production Storage and Offloading (FPSO) out here with a discovery, then there will be a lot of operation and maintenance. Easily 100 people, of course not thousands, but of course the business will grow,” he said.
“Oil and gas definitely, you saw all in the slides, 20 times multiplier. RM2 million per worker. That is the number of oil and gas. National average is only 100,000,” said Reservoir Link Energy Berhad Chief Technology Officer Anwarudin Saidu Mohamed who moderated the session, pointing out the notable multiplier effect on economic impact.
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