Kota Kinabalu: Petronas and the Sabah Government on Thursday accorded recognition to Sabah-based oil and gas services and equipment (OGSE) vendors for their achievements in fostering a sustainable and competitive local ecosystem.
To date, a total of 98 Sabah-based OGSE vendors have been recognised for their capabilities and track record in securing contracts.
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This reflects a steady increase since the signing of the Sabah Commercial Collaboration Agreement (CCA) in 2021, with 47 vendors receiving recognition for the first time in 2025, signalling the growing depth and maturity of local industry capabilities.
This progress is further reflected in the growth of contracts secured by Sabah vendors, which rose from 133 in 2021 to 499 in 2025.
Held at the Sabah International Convention Centre, the recognition ceremony was witnessed by Assistant Sabah Finance Minister II Datuk Sr Mohd Ishak Datuk Ayub, representing Deputy Chief Minister II and Sabah Finance Minister Datuk Seri Panglima Masidi Manjun.
The Sabah OGSE Vendor Commemoration programme is in its 4th year, which was first introduced in 2022 in conjunction with the Sabah–Petronas Annual Strategic Dialogue (ASD), held in Kota Kinabalu.
The initiative aims to recognise and showcase achievements driven by strong collaboration between Petronas and the Sabah State Government, while celebrating the contributions of Sabah’s Oil & Gas Services and Equipment (OGSE) industry players.
The Sabah Commemoration Day also serves as a platform to acknowledge the achievements of local OGSE vendors and service providers who contribute to the growth of Sabah’s oil and gas industry.
This year the recognition of 98 Sabah vendors reflects continued progress and the strong relationship between Petronas, the Sabah State Government, and the local OGSE ecosystem.
Datuk Sr. Mohd Ishak Datuk Ayub in his speech lauded the Sabah vendors who have earned the trust and respect of Petronas and other clientele. He said these Sabahan companies “not only win contracts but also win trust.”
Mohd Ishak said that Sabah through SMJ Energy is securing more equity and participation in the state’s oil and gas industry as the state is not only hosting these activities but is actively participating in its development.
“This is a clear signal where we are going next, to build our future oil and gas ecosystem as Sabah must move towards majority participation.”
He thanked Petronas for its commitment to Sabah for including more Sabahan companies into its high value non-traditional scope of works, including deep water exploration and extraction.
Petronas Vice President of Group Procurement, Rashidah Alias presented the recognition certificate plaque to the vendors, witnessed by Petronas Senior Vice President of Malaysia Petroleum Management, Datuk Ir. Bacho Pilong.
In his address, Datuk Ir. Bacho highlighted the evolving dynamics of the global energy landscape and the continued importance of the OGSE sector to Malaysia’s economy.
He said, “As we navigate rapid change in the global energy landscape, the OGSE sector remains a vital pillar of Malaysia’s economy. With the support and ongoing collaboration, with the Sabah State, we can build a resilient OGSE supply chain, and position Sabah as the preferred investment destination. Standing still is not an option.”
“Safety is very important,” Ir. Bacho Pilong stressed to OCSE players who are become more resilient as he lauded Sabah’s growing strong and competitive OCSE players who are helping to unlock Sabah and Malaysia’s upstream potential.
He commended Sabah vendors rising to meet new challenges and taking on work bigger and more complex to be internationally relevant in the face of competition coming soon from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) opening up of the regional economy, with the Regional Comprehensive Economic Partnership (RCEP).
Among the recognised vendors are those awarded medium-to-complex scope contracts, including Gas Turbine Maintenance, Production Support Vessel (PSV) services for deepwater drilling, Wellhead Maintenance, Terminal Turnaround, Maintenance and Modification (TTAMM) and Marine Operations.
The vendors have also strengthened industry collaboration through Joint Venture (JV) contracts for Offshore Maintenance, Construction, and Modification (MCM) and Hook-Up (HUC) scopes, reflecting continued progress in technical capability and service expansion within Sabah’s oil and gas sector.
Meanwhile, two Sabah-based companies were introduced under the Vendor Development Programme (VDP): Seascape Synergy Services Sdn Bhd for Life Raft and Lifeboat Maintenance, and GMB Dynamic Sdn Bhd for Fire Truck Maintenance Services. These new entrants reflect the strengthening capabilities of Sabah’s OGSE sector, as more local companies meet higher standards of safety, quality, and operational excellence.
Petronas and the Sabah State Government extend their appreciation to all partners, associations and vendors whose continued commitment contributes to the strengthening of Sabah’s OGSE ecosystem. Both parties remain committed to fostering a sustainable, inclusive and competitive industry for the future.
