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Kota Kinabalu: Sabah’s oil and gas services and equipment (OGSE) sector is poised for a significant expansion over the next three years, driven by increased offshore activities and rising demand for local technical capabilities under the Kinabalu Activity Outlook 2026–2028.

Sabah Oil and Gas Services Council (SOGSC) President Datuk Harris Anuar Tan said the outlook represents a critical window for local industry players to move up the value chain and take on more complex roles.

He said the period will be characterised by a shift towards higher-value offshore campaigns and stronger local content requirements.

“We are entering a cycle of significant offshore activity that will demand not just participation, but capability from local players,” he said at the Memorandum of Agreement (MoA) signing ceremony between Kinara Energy Sdn Bhd and Dayang Enterprise Holdings Berhad at  Magellan Sutera Resort here Wednesday.

Harris highlighted that one of the key drivers is a projected upsurge in Topside Major Maintenance (TMM) and Integrated Well Services (IWS), particularly in the Kinabalu and Samarang clusters.

He said these activities are essential to extend the lifespan of existing offshore assets, and will generate a steady pipeline of work for support service providers.

“This creates consistent opportunities for local companies to build experience and scale their operations in offshore maintenance and integrated services,” he added.

Beyond maintenance, Harris pointed to expanding deepwater and subsea developments as another major growth area for Sabah’s OGSE sector.

He noted that projects surrounding Gumusut-Kakap and Malikai are expected to ramp up, requiring more advanced technical expertise from local vendors.

“These developments call for capabilities in subsea engineering, remote operating vehicles (ROVs) and specialised mooring systems.

“This is where local companies must step forward and demonstrate readiness to participate in high-complexity work,” he said.

Harris also underscored the growing importance of decommissioning and abandonment (D&A) services as several mature oilfields approach the end of their lifecycle.

He said this segment presents new opportunities for local joint ventures to develop niche expertise, particularly in plug and abandonment (P&A) operations.

“As more fields mature, the need for safe and efficient decommissioning will increase, opening up a new service segment for Sabah-based players,” he said.

At the same time, Harris stressed that these emerging opportunities must be supported by strong local content policies to ensure long-term benefits for Sabah.

He said initiatives under the Sabah Local Content Council (SLCC) are crucial in ensuring that technical knowledge is developed and retained within the state.

“Our focus is not just on participation, but on embedding expertise locally, so that Sabahans are equipped to lead, not just support, these projects,” he added.

Harris said the MoA between Kinara Energy and Dayang Enterprise comes at a timely juncture, positioning both companies to capitalise on the anticipated surge in offshore activities.

He noted that such collaborations demonstrate to Petroleum Arrangement Contractors (PACs) that Sabah-based companies are ready to undertake more technically demanding roles.

“This is the kind of partnership that signals our readiness to move into high-value, high-complexity segments of the industry,” he said.

Harris reiterated that the 2026–2028 period will be pivotal in shaping the future of Sabah’s energy sector, urging local players to seize the momentum.

“The opportunities are there, but we must be prepared - technically, operationally and strategically - to capture them,” he said.