Sabah sets 80:30 Oil and Gas Services and Equipment target
Published on: Friday, June 28, 2024
By: Hayati Dzulkifli
Masidi (6th right) receiving a memento from Dolly (6th left) while Bacho (5th right), Siti (4th right), Harun (third left) and others look at the 11th SOGCE 2024.
Kota Kinabalu: Sabah has set a target to award 30 per cent of all Oil and Gas Services and Equipment (OGSE) spending within Sabah to qualified Sabahan companies, said State Finance Minister Datuk Seri Masidi Manjun.
“To further boost local participation, Sabah has launched the Sabah Local Content Council to enhance the involvement of local businesses in the sector.
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“With the support of Petronas and all Production Sharing Contracts (PSCs), the State aims to achieve 80pc Sabahan employment rate within the OGSE industry for this year.
“These developments bode well for our State’s economic growth, aligning with the State Government’s aspirations under its Hala Tuju Sabah Maju Jaya initiatives,” he said.
Masidi who is also SMJ Energy Sdn Bhd Chairman was opening the 11th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE) at Sabah International Convention Centre (SICC), Thursday.
This year’s conference theme is “Accelerating and Humanising Energy Transition and Digital Transformation in the Oil, Gas and Energy Industry”.
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Masidi also witnessed the signing of 10 Memorandum of Understanding (MoUs) between companies and government-linked companies (GLC), national oil company and several higher learning institutions, among others.
He said Sabah is fortunate to hold most of the country’s remaining oil resources, making the State a cornerstone of Malaysia’s oil and gas production. Sabah contributes nearly 40pc of the nation’s oil and nearly 20pc of its gas production.
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“Sabah has abundant resources, including significant reserves within existing PSCs, near fields and promising deep-water sites.
“These resources underscore our capacity and emphasise our potential to drive future energy innovations and sustainability,” he said.
On the SOGCE, he said it aligns perfectly with the Sabah Government’s aspirations and sets a promising trajectory for Sabah and its talents.
Since the last SOGCE, Sabah has witnessed remarkable progress in the sector.
“Through SMJ Energy, the State has strategically secured interests in the Samarang PSC, the Samur petrochemical plant and exploration rights in blocks SB409 and SB403.
“SMJ Energy is now a RM5 billion asset company. Additionally, Sabah Energy Corporation’s (SEC) landmark acquisition of Petronas onshore gas contracts in Sabah has propelled them to the forefront of the domestic gas market.
“SEC now stands as the country’s largest domestic supplier and transporter of natural gas.”
Masidi said the Sabah Government believed in partnerships to foster foreign direct investment, collaborating with Petronas, international oil and gas companies, and local enterprises to promote industrial growth.
“Notable examples include E-Steel’s phase one RM6.09 billion investment in Hot Briquette Iron and flat steel production facilities, SBH Kibing’s substantial RM12.2 billion project for silica sand processing and solar panel manufacturing, and a multi-billion-dollar floating LNG (Liquefied Natural Gas) project by Petronas near-shore in Sipitang Oil & Gas Industrial Park (Sogip), where Sabah will be a shareholder.
“These projects collectively demonstrate our efforts to drive economic growth and prosperity,” he said.
Since its inception in 2012, the Sabah Government has steadfastly supported SOGCE, which the conference has evolved into the premier oil, gas, and energy event in Sabah, demonstrating remarkable resilience during Covid-19 by organising an online conference and exhibition.
“I am proud to note that SOGCE was the first in Malaysia to host such an event online in August 2020, shortly after the lockdown began in March 2020. This exemplifies our commendable perseverance and persistence.
Also present were Malaysia Petroleum Management, Petronas Senior Vice-President Datuk Ir. Bacho Pilang, Sabah Energy Corporation Chairman Datuk Annuar Ayub Aman, Upstream Malaysia Petroleum Resources Country Chair and Senior Vice President Siti Sulaiman, SMJ Energy Sdn Bhd Special Advisor Datuk Seri Lim Haw, Sabah Development Corporation Sdn Bhd Managing director and CEO Datuk Harun Ismail, and other senior officials.
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