KOTA KINABALU: Total revenue earned by Sabah Oil and Gas Services and Equipment  (OGSE) vendors have reached RM2 billion from contracts awarded by PETRONAS and  Petroleum Arrangement Contractors (PACs) from 2021 to 2024. 

Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said, of this amount RM1 billion was earned last year alone. This marked a 229 per cent increase from RM613 million in  2021 to RM1 billion in 2024, while the number of Sabah OGSE companies had also  grown by 91 per cent from 79 to 151.  

“This remarkable achievement highlights the success of our collaborative efforts since  the signing of the Commercial Collaboration Agreement (CCA) with PETRONAS in  December 2021 to sustain and enhance the capabilities of Sabahan vendors,” he said. 

Speaking at the commemoration of Sabah OGSE vendors at the Sabah International  Convention Centre (SICC) here today, Hajiji commended PETRONAS for providing  opportunities for the OGSE sector to grow and giving its firm commitment to advance a  vibrant and sustainable oil and gas ecosystem in Sabah. 

His speech was delivered by Finance Minister Datuk Seri Panglima Masidi Manjun. 

He said the CCA was a step in the right direction, which has since paved the way for  mutual collaborations and strategic initiatives. 

Among them, the Sabah Mentorship Programme, a key initiative by PETRONAS and the  Sabah Government, which was the cornerstone of the initiative, pairing experienced  technical services providers with Sabahan vendors to foster knowledge transfer,  collaboration, and development of specific technical capabilities aligned with Sabah’s oil  and gas tender plans.  

“This programme has not only empowered Sabahans with necessary skills and  knowledge but also strengthened the pipeline of qualified vendors, ensuring a  sustainable future for the industry,” he said. 

To further this agenda, he said the State Government, through SMJ Energy, had  established the Sabah Local Content Council in May last year, which served as a collaborative platform for industry stakeholders to address challenges and identify  opportunities to enhance capacity building for local content in the OGSE industry.  

Through this platform, the State Government will mandate all stakeholders to invest in  the training and development of Sabahans through short-term and medium-term  programs to be executed in 2025, he said.  

Hajiji also stressed the importance of prioritising the employment of Sabahans in all  projects and operations within the state.  

“I want all industry players to respect and comply with this fundamental requirement as  a core principle of our commitment to local development,” he said. 

The Chief Minister was delighted to learn that 88 Sabah vendors have successfully  secured contracts and purchase orders from PETRONAS and PACs in 2024.  

“This achievement reflects the resilience and competitiveness of our local businesses  and their ability to thrive in a dynamic and challenging industry,” he said. 

He said the fact that four Sabahan vendors have been awarded contracts for more  complex job, like the Integrated Well Continuity Services (IWCS) marked a milestone for  the state OGSE industry. 

“This achievement demonstrates the trust and confidence that PETRONAS and PACs  have placed in the capabilities of Sabahan companies, empowering them to undertake  critical roles in the oil and gas value chain,” he said. 

Hajiji assured that the State Government remained steadfast in its commitment to  providing Sabah OGSE companies with the necessary support to create a thriving  environment.  

“I want Sabah OGSE companies to up their game by bidding for larger, more complex  projects. Sabah companies with limited technical capabilities can seek out technically  qualified partners through strategic local and international alliances,” he said. 

He added that the State Government will continue collaborating closely with PETRONAS  and other stakeholders to enhance the business environment for local vendors.  

“Hence, I urge Sabah OGSE companies to leverage every opportunity to increase their  revenue streams, expand their company's operations, and create employment  opportunities for Sabahans.  

“Prioritise the training and development of Sabahans to enhance their skills and  competitiveness within the OGSE industry. Keep up to speed with market intelligence  that provides valuable insights on opportunities within the Sabah oil and gas sector,” he  said. 

Ends