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Kota Kinabalu: Kinara Energy Sdn Bhd and Dayang Enterprise Sdn Bhd on Wednesday sealed a Memorandum of Agreement (MoA), marking a significant milestone in Sabah’s push towards greater ownership and leadership in the oil and gas sector.

Formalised at The Magellan Sutera Resort here, the collaboration underscores the State’s strategic direction under the Hala Tuju Sabah Maju Jaya (SMJ) framework and its Oil & Gas Services and Equipment (OGSE) Roadmap to enhance local participation.

Deputy Chief Minister II cum Finance Minister Datuk Seri Masidi Manjun, who witnessed the signing, described the partnership as a defining moment in Sabah’s oil and gas journey.

“This MoA signals a transition from participation to ownership, from supporting roles to leadership and from value leakage to value retention within our State,” he said.

Masidi stressed that Sabah must no longer remain a passive observer of its own natural resources, calling on Petronas and Petroleum Arrangement Contractors (PACs) to provide Sabah-based companies access to core, high-value contracts.

“Do not just give them peripheral work — give them a seat at the table,” he said, citing the Kinara–Dayang collaboration as a model that combines local ownership with global-standard execution.

Masidi, who is also Chairman of SMJ Energy, said this partnership must translate into real contracts, real projects and real opportunities for Sabahans.

“Because its success is not just corporate, it is Sabah’s success.”

Under the OGSE Roadmap, Sabah is targeting 60 per cent local participation in OGSE contracts by 2026. Local companies have already recorded strong growth, including a notable increase in contracts secured by Sabah-based vendors over the past year.

Kinara Energy Managing Director Sylvester Linus said the partnership would serve as a strategic platform to deliver tangible outcomes for Sabah.

“This collaboration brings together Kinara’s strong local grounding with Dayang’s proven technical capabilities. It is about building a credible, high-performance Sabahan solution that is ready to compete, execute and lead,” he said.

Dayang Enterprise Executive Deputy Chairman Datuk James Ling Suk Kiong said the collaboration reflects the company’s continued commitment to supporting local capacity building while upholding high technical standards.

“We see strong potential in this partnership with Kinara Energy. By combining our technical expertise with local insights and capabilities, we aim to deliver high-quality, safe and efficient solutions while contributing to the growth of Sabah’s oil and gas ecosystem,” he said.

He added that Dayang remains committed to fostering meaningful partnerships that support long-term industry development and value creation at the national level.

The partnership is expected to generate broader economic benefits, including increased wealth retention within Sabah, accelerated technology and knowledge transfer, and stronger long-term economic resilience. It also supports the State’s ambition to become a regional hub for high-value oil and gas services.

Kinara Energy, a Sabah-based licensed entity, focuses on engineering, project development and strategic partnerships to advance local industry participation. Dayang Enterprise, headquartered in Miri, Sarawak, and wholly owned by Dayang Enterprise Holdings Berhad, brings more than four decades of experience in offshore maintenance, fabrication and support services.

The ceremony was attended by senior government officials, industry leaders and representatives from SMJ Energy, Petronas, SOGSC and other key stakeholders.