Sabah Given Broader Participation In Oil And Gas Industry - Azalina
KUALA LUMPUR, Aug 11 (Bernama) -- Sabah has been given broader participation in the oil and gas industry value chain, including through the active involvement of state-owned companies such as SMJ Energy Sdn Bhd (SMJE) via the Commercial Collaboration Agreement (CCA).
Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Azalina Othman Said, stated that the strategic collaboration between Petronas and the Sabah state government was strengthened with the signing of the CCA on Dec 7, 2021. She added that, as of the first quarter of 2025, a total of 326 Sabah-based companies have been licensed and registered as Petronas vendors.
"Following the signing of the CCA in 2021, the value of contracts awarded to these companies had increased from RM613 million to RM2 billion as of 2024 – a 3.3-fold increase,” Azalina said in a written reply to a parliamentary question published on the Dewan Rakyat portal today.
She was responding to Datuk Seri Jeffrey Kitingan (GRS-Keningau), who had asked for clarification on when the government and Petronas would implement the agreements with the Sabah government regarding the state’s oil and gas rights and revenue sharing. She stated that Petronas remains committed to progressively and structurally strengthening Sabah’s participation, based on the principles of technical feasibility and sustainable commercial terms.
“This comprehensive development reflects the increased participation and commercial benefits enjoyed by Sabah in the national oil and gas industry, in line with the cooperation framework agreed upon through the CCA,” she added.
-- BERNAMA