HAJIJI said the State Government is targeting 60 per cent contract ownership for local OGSE vendors this year, following the success of the implementation of the Sub-Committee 4 (SC4) policies under the Commercial Collaboration Agreement (CCA) between the State Government and Petronas on Dec 7, 2021.
“Since the implementation of the SC4 policies, the number of active contracts secured by local Sabahan vendors has grown significantly from 133 contracts in 2021 to 499 active contracts in 2026.
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“To date, 393 active Sabah-based OGSE vendors have been formally recognised and vetted for their technical capabilities,” he said.
Hajiji said the State Government wants Sabah companies to move beyond low-margin subcontracting and become main contractors, licence holders, technology adopters and long-term value creators.
“Ultimately, we want more of the economic value generated from Sabah’s oil and gas industry to remain in Sabah, while continuing strong and mutually beneficial collaboration with credible national and international partners,” he said.
Hajiji said Sabah welcomed international operators, major national players and established service providers as important partners in the State’s growth.
He said Sabah offers strong resource fundamentals, a competitive operating environment, clear policy direction through the CCA and a stable, pro-business State Government.
“However, what we seek is not merely partnership. We seek partnership with purpose. Local content must be meaningful, measurable and sustainable.
We expect partnerships that deliver real technology transfer, structured capability development, local workforce training and fair commercial participation.
“Those who invest sincerely in upgrading Sabahan workers, building the capabilities of local vendors and establishing long-term operational roots in Sabah will find the State Government a supportive and reliable partner,” he said.
He said Sabah’s oil and gas development has made remarkable progress since the first significant discovery in 1971.
“Today, Sabah plays a vital role in Malaysia’s energy landscape, contributing more than 40pc of the country’s crude oil and approximately 20pc of its natural gas production,” he said.
However, Hajiji said Sabah can no longer be content with merely supplying raw resources, as production figures alone do not build a modern and resilient economy.
“The future of Sabah lies not in extraction alone, but in equity, execution and local ownership.
“We must ensure that the wealth generated from our resources creates stronger local companies, better employment opportunities, deeper technical capabilities and wider economic spill overs across the State,” he said.
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