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Kota Kinabalu: When Datuk Seri Hajiji Noor took office in September 2020 as Chief Minister, Sabah was receiving minimal benefits from its own oil and gas resources.Today, the story is different.

Hajiji made a bold decision that would change Sabah’s future. He reached out to a Sabahan oil and gas expert based in Beijing for guidance and formed a special committee. 

Armed with a clear proposal, Hajiji, together with Datuk Seri Masidi Manjun, met with the Petronas top brass at its Twin Towers headquarters in Kuala Lumpur.

“Now we finally know what Sabah wants,” was the response from Petronas President Tan Sri Tengku Mahmud Taufik after reviewing their proposal. 

This breakthrough led to the Commercial Collaboration Agreement signed with Petronas in December 2021.

The results speak volumes. In 2021, Sabah companies received only RM341 million in oil and gas service contracts. By the end of 2024, this figure soared to over RM2 billion, representing contracts awarded both within and outside Sabah.

Through SMJ Energy, the Sabah Government under Hajiji’s leadership has secured major equity stakes that will benefit Sabahans for generations to come. 

The State now holds 50 per cent equity in the Samarang oil production field, 25 per cent equity in the Samur petrochemical complex and 25 per cent equity in the USD3.1 billion ZLNG floating liquefied natural gas facility in Sipitang, with the agreement signed in July 2025. 

Additionally, Sabah has acquired 10 per cent equity in LNG9 and full ownership of Sabah International Petroleum, which operates FPSO and FSO assets. 

The State also holds free carry and back-in rights in exploration blocks SB409, SB403, SB306A and SB306B, with participation ranging from 15 to 20 per cent.

The Sabah Government has also announced its intention to acquire 40 per cent participating interest in PFLNG1, with due diligence targeted to begin in the second half of 2025.

The GRS government has set ambitious local participation targets that ensure Sabahans benefit directly from the oil and gas industry. 

The target is a 100 per cent increase in Oil and Gas Services and Equipment contracts for Sabah companies. 

In terms of employment, all non-technical roles and at least 80 per cent of technical roles in the sector must be filled by Sabahans.

Today, a large portion of Sabah’s revenue comes from oil and gas, thanks to proper negotiation and fair presentation by Hajiji and his team which led to these historic achievements. 

At the same time, the GRS government recognised that reliable, sustainable energy is crucial for development and has invested heavily in upgrading and expanding Sabah’s power infrastructure. 

 More than 60,000 consumers in Sabah and Labuan are benefiting from improved electricity supply through the implementation of seven energy projects valued at RM260.7 million.

These projects, aimed at upgrading substations, extending the grid and enhancing monitoring systems, span key areas including Tanjung Aru, Ranau, Batu Sapi and Labuan. 

Deputy Prime Minister cum Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof officially handed over the projects during his visit to the Kota Kinabalu Main Intake Substation in July 2025.

The Kota Kinabalu Main Intake Substation upgrade involved replacing an outdated 66/11kV system with a new 132/33/11kV gas-insulated switchgear system. 

The facility now benefits around 11,452 users in Kota Kinabalu and improves power reliability to key areas, including the international airport.

A RM34.92 million project linking Beaufort to the Sabah-Sarawak border will enable the import of up to 30MW of electricity from Sarawak to Sipitang once Sarawak Energy Berhad completes its section. 

This transmission line is designed to handle up to 500MW, supporting the Asean Power Grid for sustainable, cross-border energy sharing.

In Ranau, a RM31.3 million substation has reduced dependence on diesel power, benefiting 15,620 users. 

Batu Sapi saw the opening of a RM30 million substation in December 2024, improving supply to 4,744 users in Sandakan and surrounding areas. 

Another RM50 million project at Universiti Malaysia Sabah increased load capacity from 93.5MW to 131.6MW, reducing power disruptions and supporting nearby growth, including the new UMS Hospital.

A RM42 million protection monitoring system completed in February 2024, featuring 15km of undersea fibre optic cable between Menumbok and Labuan, improved safety and reliability. 

A further RM6.3 million upgrade in Labuan enhanced the capacity to support new developments.

The State Government has also placed Sabah as a leader in clean energy. The Tawau Q-Solar Large-Scale Solar project is expected to generate 15 megawatts of clean energy by the end of 2026. 

This high-impact project on a site of over 45 acres is being developed through a strategic collaboration between Qhazanah Sabah Berhad, Qhazanah Energy Sdn Bhd and QSolar Tawau Sdn Bhd.

At Kota Kinabalu International Airport, Malaysia Airports is implementing a solar rooftop project under the Self-Consumption scheme. 

Approved in 2022, the 4MW-capacity project allows solar panels to be installed on the airport’s rooftops for internal energy use, supporting the Government’s push toward greener and more sustainable energy solutions.

 One of the most exciting developments is the Ocean Thermal Energy Conversion project, which harnesses energy from our oceans. 

Power plants are currently being planned to span 500km of coastline and, in time, to be able to generate 20,000MW of green energy, an unprecedented scale globally. 

“This is not only a game changer for the country, it is a game changer for the region,” Hajiji was quoted as saying. 

The Sabah Energy Roadmap and Master Plan 2040 is expected to generate 700MW in the next one to two years to meet the needs of investors and citizens. 

Major projects like the Ulu Padas Hydroelectric Dam in Tenom and the RM765 million Southern Link Project announced by the Prime Minister will further strengthen energy security, particularly on Sabah’s East Coast.