KOTA KINABALU: Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said a five-year Sabah Oil and Gas Services and Equipment (OGSE) Roadmap (2026-2030) is being formulated to build a sustainable OGSE industry.
Moving forward, he said the State Government believes that a sustainable OGSE industry cannot be built solely through a rigid, top-down blueprint.
“A strong and resilient industry must be shaped through close collaboration among the government, PETRONAS and all key stakeholders, including operators, contractors, vendors, industry associations, financial institutions, and training providers.
Feedback from all stakeholders is important for the development of the Five-Year Sabah OGSE Roadmap 2026–2030, he said at the inaugural OGSE Conference and Exhibition 2026 at the Sabah International Convention Centre (SICC) on Thursday.
His speech was delivered by Deputy Chief Minister II/Minister of Finance, Datuk Seri Panglima Masidi Manjun.
He urged the participants at the OGSE Conference to use this platform to deliberate on this strategic blueprint.
“The roadmap must be practical, industry-driven, and outcome-oriented. It should address the real constraints faced by local companies and provide clear pathways for growth, focusing on three critical areas,” he said.
The first area of focus , he said is Access to Capital: Setting up reliable credit lines and specialised working capital options so local vendors can smoothly fund capital-intensive offshore projects.
The second area of focus is Technical Upgrading: Preparing local vendors to win complex engineering scopes, particularly in asset integrity and major development activities in Sabah.
While the third focus area would be Talent Matching: Connecting high-value technical jobs directly with Sabahan youth, keeping the state’s best talent working here at home.
“I believe the discussions and recommendations from this conference will be important for us, and that is precisely why we have you here with us today. I look forward to hearing your insights,” he said.
He said the OGSE sector serves as a high-potential lever for Sabah.
“It enables our shift from pure resource extraction to value-added services, while fostering inclusive growth and supporting SMJ 2.0’s goals of higher productivity and shared prosperity.
“More importantly, it acts as a key driver for local content development, job creation, SME growth and revenue diversification,” he said.
In this regard, Hajiji said the State Government is targeting 60 per cent contract ownership for local OGSE vendors this year, following the success of the implementation of the Sub-Committee 4 (SC4) policies under the Commercial Collaboration Agreement (CCA) between the State Government and PETRONAS on Dec 7, 2021.
“Since the implementation of the SC4 policies, the number of active contracts secured by local Sabahan vendors has grown significantly from 133 contracts in 2021 to 499 active contracts in 2026.
“To date, 393 active Sabah-based OGSE vendors have been formally recognised and vetted for their technical capabilities,” he said.
Hajiji said the State Government wants Sabah companies to move beyond low-margin subcontracting and become main contractors, licence holders, technology adopters and long-term value creators.
“Ultimately, we want more of the economic value generated from Sabah’s oil and gas industry to remain in Sabah, while continuing strong and mutually beneficial collaboration with credible national and international partners,” he said.
Hajiji said Sabah welcomed international operators, major national players and established service providers as important partners in the state’s growth.
He said Sabah offers strong resource fundamentals, a competitive operating environment, clear policy direction through the CCA and a stable, pro-business State Government.
“However, what we seek is not merely partnership. We seek partnership with purpose. Local content must be meaningful, measurable, and sustainable. We expect partnerships that deliver real technology transfer, structured capability development, local workforce training and fair commercial participation.
“Those who invest sincerely in upgrading Sabahan workers, building the capabilities of local vendors and establishing long-term operational roots in Sabah will find the State Government a supportive and reliable partner,” he said.
He said Sabah’s oil and gas development has made remarkable progress since the first significant discovery in 1971.
“Today, Sabah plays a vital role in Malaysia’s energy landscape, contributing more than 40 per cent of the country’s crude oil and approximately 20 per cent of its natural gas production,” he said.
However, Hajiji said Sabah can no longer be content with merely supplying raw resources, as production figures alone do not build a modern and resilient economy.
“The future of Sabah lies not in extraction alone, but in equity, execution, and local ownership.
“We must ensure that the wealth generated from our resources creates stronger local companies, better employment opportunities, deeper technical capabilities, and wider economic spillovers across the State,” he said.-pr/BNN
