KOTA KINABALU: The State Government in collaboration with PETRONAS and industry partners has set a target of a 100 per cent increase in oil and gas services and equipment (OGSE) local job contracts for Sabahan companies this year, Chief Minister Datuk Seri Panglima Haji Hajiji Haji 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, homegrown energy ecosystem.” he said at the 12th Sabah Oil, Gas and Energy Conference and Exhibition at the Sabah International Convention Centre here today.
His speech was delivered by Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe.
In 2021, he said the total contract awarded to Sabahan companies for local oil and gas services jobs stood at RM341 million, while by the end of last year, the figure 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 that our role must extend beyond mere production. We aspire for Sabah to become a center of excellence for OGSE innovation and sustainable energy energy practices and a hub where investment, talent, and technology converge to create long-term value,” he said.
In this respect, the Chief Minister 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 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 Ministry of Industrial Development and Entrepreneurship 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, wellprepared, and well-partnered for success,” he said.
Hajiji commended the Sabah Oil and Gas Services Council (SOGSC) and the Persatuan Kontraktor Petroleum Bumiputera Sabah (PKPBS) for their role in championing Sabahan participation in the OGSE sector.
He also called on everyone to support the effort of the SOGSC and PKPBS to organise this OGSE conference next year.“Our vision is to build a pipeline of OGSE opportunities that extends far beyond shortterm 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.-pr/BNN
