KOTA KINABALU: Sabahans are urged to seize the opportunity to tap into the growing oil and gas services and equipment (OGSE) industry in the state, said Datuk Seri Masidi Manjun.
The state Finance Minister said Sabahans have a golden opportunity to benefit from this industry as the state is set to become an OGSE powerhouse through a strategic collaboration with Petronas via its oil and gas company, SMJ Energy Sdn Bhd.
"This is the moment for local talents, regardless of socio-economic backgrounds, to step up, whether by starting their own OGSE businesses or joining existing local companies," said the SMJ Energy chairman.
Masidi said for years, Sabahans have called for more opportunities in oil and gas and it is now time to make it happen.
SMJ Energy’s Executive Director of OGSE and Corporate, Terry Biusing, highlighted SMJ Energy’s critical role in facilitating these efforts, pointing to the successful collaboration between the state, Petronas, and local OGSE players.
He said this synergy has created a vibrant environment for economic growth, and they are already seeing more local companies growing and being awarded OGSE contracts.
Since the signing of the Commercial Collaboration Agreement between the state government and Petronas in December 2021, Sabahan OGSE companies saw a 38% increase in revenue from 2022 to 2023, securing RM780mil worth of jobs in Sabah.
This is an overall revenue of RM1.5bil for services rendered throughout Malaysia.
The number of active local companies has surged by 58%, with 125 companies now leading in providing OGSE services in the state.
According to company records, the groundwork established in 2023 is set to yield significant benefits in 2024, with projected revenues for Sabah OGSE companies expected to double.
Additionally, a Sabah Local Content Council was set up in May this year, consisting of representatives from all oil and gas operators in the state, Sabah OGSE industry associations, and representatives from Petronas and the state government.
This council aims to further drive local contractor participation in OGSE under state government sponsorship.
