Business

SOGIP to anchor Sabah’s oil and gas expansion, says Hajiji

Hajiji launches Petroventure’s oil refinery project to boost Sabah’s energy sector

Updated 1 year ago · Published on 19 Feb 2025 8:55AM

SOGIP to anchor Sabah’s oil and gas expansion, says Hajiji
Hajiji said Sabah is strategically positioned for investment due to its natural resources, stable political climate, and economic diversity. - February 19, 2025

by Jason Santos

SABAH is cementing its role as a key energy player, with the Sipitang Oil and Gas Industrial Park (SOGIP) driving major investments and economic growth, said Chief Minister Datuk Seri Hajiji Noor.

Speaking at the launch of the Petroleum Storage and Refinery Plant project at SOGIP, Hajiji said the state government remains committed to turning Sabah into a competitive oil and gas hub.

“I am confident that with the success of this project, it will be a catalyst for the growth of the oil and gas industry and make Sabah a competitive energy hub at the international level,” he said at the Sabah International Convention Centre (SICC). 

The RM8.88 billion (USD2 billion) energy, oil, and gas hub project, a collaboration between Sabah Oil and Gas Development Corporation (SOGDC) and Gibson Shipbrokers Limited, is set to establish Sabah as a key player in the Southeast Asian energy sector.

Hajiji said Sabah is strategically positioned for investment due to its natural resources, stable political climate, and economic diversity.

“We are blessed that Sabah is rich in natural resources such as forests, minerals, fauna, flora, and marine life. A strategic location, stable political environment, abundant resources, and a diverse economy make Sabah an attractive destination for foreign investors,” he said.

The Petroventure Energy Sdn Bhd refinery and storage plant, set to begin construction in April, will be built on 400 acres of SOGIP land.

It will have the capacity to process 150,000 barrels of crude oil per day (BPD) and store 3 million cubic meters of crude and refined petroleum products.

“This is another major strategic investment that will undoubtedly strengthen Sabah’s position as an oil and gas hub in the region,” Hajiji said.

The project is expected to attract USD3.5 billion (RM15.5 billion) in foreign direct investment (FDI) and create nearly 5,000 job opportunities for Sabahans.

During construction, over 3,000 workers will be required, while more than 1,000 permanent jobs will be available once the refinery is fully operational.

Hajiji stressed the importance of prioritizing Sabahan workers, urging industry players to comply with local hiring requirements.

“All of this is a good sign in our efforts to create job opportunities for the people. I have always emphasized the importance of prioritizing Sabahan workers in all projects and operations in the state. I want all industry players to comply with this basic requirement as a key principle in our commitment to local development,” he said.

The project will also feature a jetty, oil grading facilities, a petroleum testing lab, and administrative buildings.

Hajiji assured that environmental sustainability remains a priority, with necessary assessments, including the Environmental Impact Assessment (EIA), ensuring the project aligns with industry and environmental standards. – February 19, 2025

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