KOTA KINABALU: Sabah’s partnership with Petronas under the Commercial Collaboration Agreement (CCA) has transformed the state’s oil and gas sector, giving local vendors a record 36 per cent of the contract market share.
The achievement represents a leap of over 26 percentage points since 2021, underscoring the effectiveness of the state’s localisation strategy for companies and skilled talent.
SMJ Energy Chairman Datuk Masidi Manjun said the progress reflects the success of a strong governance framework between the state and Petronas through Sub-Committee 4 (SC4) for the oil and gas services and equipment (OGSE) industry.
He said Sabah firms held only three per cent of contracts in 2018 but have now risen to 36 per cent thanks to policies such as tender thresholds, reserved work categories, and mandatory partnerships.
Permanent Secretary to the Industrial Development and Entrepreneurship Ministry and SC4 Co-Chairman Datuk Thomas Logijin said the collaboration ensures that every policy benefit under the CCA translates into real change for local businesses.
Since 2021, the number of contracts held by Sabahan vendors has surged by 263 per cent—from 133 to 483—while those with long-term deals have grown by 260 per cent, providing business stability.
The total contract value awarded to Sabahan companies reached RM1.7 billion by September 2025, injecting unprecedented capital into the state’s economy and generating more jobs for local youth.
SMJ Energy Executive Director for OGSE and Corporate, Terry Biusing, said local firms are now handling complex, high-value work such as hook-up, commissioning, and offshore maintenance once dominated by external players.
The state has now set an ambitious goal to raise local companies’ market share to 60 per cent by the end of 2026 through coordinated efforts between SC4, joint task forces, and the Sabah Local Content Council.
SMJ Energy CEO Datuk Dionysia Kibat said the focus is now on developing skilled labour to sustain this growth, ensuring that the wealth from Sabah’s natural resources benefits its people first.
