SABAH oil and gas vendors earned RM2 billion in contracts from 2021 to 2024, with RM1 billion secured last year alone.
The contracts, awarded by Petronas and Petroleum Arrangement Contractors, marked a 229% increase from RM 613 million in 2021.
The number of Sabah-based oil and gas service companies also grew by 91%, from 79 in 2021 to 151 in 2024.
Chief Minister Datuk Seri Hajiji Noor attributed the success to collaborative efforts under the Commercial Collaboration Agreement signed with Petronas in December 2021.
“This remarkable achievement highlights the success of our collaborative efforts to sustain and enhance Sabahan vendors’ capabilities,” Hajiji said in a speech delivered by Finance Minister Datuk Seri Masidi Manjun.
Hajiji praised the Sabah Mentorship Program for pairing experienced service providers with Sabahan vendors to foster knowledge transfer and technical development.
He also commended the Sabah Local Content Council, established in May 2024 under SMJ Energy, for helping address challenges and improve local capacity.
Four Sabahan vendors secured contracts for complex jobs, including Integrated Well Continuity Services and Offshore Maintenance, Construction, and Modification services.
“This demonstrates the trust and confidence that PETRONAS and its partners have in Sabahan companies,” Hajiji said.
Hajiji urged local vendors to aim for larger, more complex projects while forming partnerships to improve their capacity.
“I want Sabah OGSE companies to up their game by bidding for larger, more complex projects,” he added.
The number of active Sabah-based companies grew from 79 in 2021 to 151 in 2024, creating over 1,000 jobs.
Hajiji reaffirmed the government’s support, promising to ensure a thriving environment for Sabah oil and gas companies. - January 23, 2025.
