Sabah To Raise OGSE Contracts For Local Firms By 100 Per Cent This Year – Hajiji
KOTA KINABALU, July 3 (Bernama) -- The Sabah government, in collaboration with Petroliam Nasional Bhd (Petronas) and industry partners, has set a target to increase by 100 per cent the value of local contracts in the oil and gas services and equipment (OGSE) sector awarded to Sabah-based companies this year.
Chief Minister Datuk Seri Hajiji Noor said that in terms of employment, the target is for 100 per cent of non-technical positions and at least 80 per cent of technical roles in the OGSE sector to be filled by Sabahans.
"This target reflects our strong commitment to strengthening local participation and building a resilient energy ecosystem based on home-grown talent," he said when officiating the 12th Sabah Oil, Gas, and Energy Conference and Exhibition at the Sabah International Convention Centre here today.
His speech was delivered by the State Minister of Industrial Development and Entrepreneurship, Datuk Phoong Jin Zhe.
According to the Chief Minister, in 2021 the total value of contracts awarded to Sabah-based companies for local oil and gas service works amounted to RM341 million, and by the end of last year, this had surged to over RM2 billion for works awarded both within and outside the state.
He said the oil and gas industry remains a key pillar of Sabah’s economic growth, contributing nearly 40 per cent of the country’s oil production and around 20 per cent of national gas output.
"However, we believe our role must go beyond just production. We aspire to make Sabah a centre of excellence for OGSE innovation and sustainable energy practices, a hub where investment, talent, and technology converge to create long-term value," he said.
In this regard, Hajiji said the state government, through SMJ Energy Sdn Bhd, has taken decisive steps to acquire equity in key upstream and downstream assets, including the Samarang PSC and the Sabah Ammonia Urea (Samur) petrochemical plant, as well as interests in the exploration blocks SB403, SB409, SB306A, and SB306B.
He said Sabah Energy Corporation has also strengthened its position as the largest domestic supplier and transporter of natural gas in Malaysia, following the successful acquisition of Petronas's onshore gas contracts in Sabah.
"I would like to take this opportunity to thank Petronas and all our operating partners in Sabah for your continued efforts, commitment, and investment in the development of local content.
"The Commercial Collaboration Agreement signed in December 2021 with Petronas is significant, and its implementation, through initiatives such as the Subcommittee for the OGSE industry, co-chaired by the Sabah Ministry of Industrial Development and Entrepreneurship and Petronas, has shown tangible results," he said.
To maintain that momentum, Hajiji said the government has established the Sabah Local Content Council under the supervision of SMJ Energy and implemented a Joint Task Force for Mandatory Sharing.
"These initiatives, along with the transparent insights provided by the Kinabalu Activity Outlook, are designed to ensure our local companies are informed, prepared, and supported by the right partners to succeed," he added.
-- BERNAMA