KOTA KINABALU: Sabah is committed towards boosting the local economy through the awarding of local contracts especially in the oil and gas industry, said Datuk Seri Masidi Manjun.
The state Finance Minister said the government had launched the Sabah Local Content Council last month which was aimed at enhancing the involvement of local businesses in the oil and gas services and equipment (OGSE) sector.
“Building on this momentum, Sabah and PETRONAS have jointly set a target for 2024 to award 30% of all OGSE spending within Sabah to qualified Sabahan companies,” he said on Thursday (June 27).
“Additionally, with the support of PETRONAS and all production sharing contractors (PSCs), the state aims to achieve an 80% Sabahan employment rate within the OGSE industry for this year.
“These developments bode well for our state’s economic growth, aligning with the state government's aspirations under its Hala Tuju Sabah Maju Jaya initiatives,” Masidi added.
He said this in his speech when opening the Sabah Oil, Gas and Energy Conference and Exhibition (Sogce) here.
Masidi, who is also chairman of state-owned SMJ Energy Sdn Bhd, said Sabah has experienced remarkable progress in the oil and gas sector over the past year.
He said that Sabah has strategically secured interests through SMJ Energy in the Samarang PSC, the Sabah Ammonia and Urea (Samur) petrochemical plant, as well as exploration rights in blocks SB409 and SB403.
“SMJ Energy is now a RM5bil asset company. Additionally, Sabah Energy Corporation's (SEC) landmark acquisition of PETRONAS onshore gas contracts in Sabah has propelled them to the forefront of the domestic gas market.
“SEC now stands as the country's largest domestic supplier and transporter of natural gas,” he said.
Towards this end, Masidi said the state believes in partnerships to foster foreign direct investment, collaborating with Petronas, international oil and gas companies, and local enterprises to promote industrial growth.
He said notable examples include Esteel Enterprise's phase one RM6.09bil investment in hot briquette iron and flat steel production facilities.
“(Others are) SBH Kibing's RM12.2bil project for silica sand processing and solar panel manufacturing and a multi-billion-dollar floating liquefied natural gas (LNG) project by PETRONAS near-shore in Sipitang Oil and Gas Industrial Park (Sogip), where Sabah will be a shareholder.
“These projects collectively demonstrate our efforts to drive economic growth and prosperity,” he said.
Masidi said Sabah was fortunate to hold most of the country’s remaining oil resources, making the state a cornerstone of Malaysia's oil and gas production. Sabah, he noted, proudly contributes nearly 40% of the nation’s oil and nearly 20% of its gas production.
“Our land has abundant resources, including significant reserves within existing PSCs, near fields, and promising deep-water sites.
“These resources underscore our capacity and emphasise our potential to drive future energy innovations and sustainability,” said.
