SABAH companies are now not involved in the bidding for major oil and gas projects in the state, but will be included later in the development process, the State Assembly was told on Monday.
Finance Minister Datuk Seri Masidi Manjun said state-owned firms such as SMJ Energy and Sabah International Petroleum (SIP) currently lack the technical and financial capacity to compete in high-stakes exploration tenders led by Petronas.
“At this point of time, SIP and SMJ are not qualified to bid because we do not have that expertise. This is an international bidding process… oil exploration can cost billions. We don’t have that capital.
“But trust me — SMJ has its own involvement, which we will announce later. This does not mean we are completely left out,” he said when responding to a supplementary question posed by Senallang Assemblyman Datuk Seri Mohd Shafie Apdal.
The minister was responding to a supplementary question from Warisan president Datuk Seri Mohd Shafie Apdal, who had raised concerns over Sabah’s position in managing its own oil and gas resources.
Citing the recent award of the Mutiara Cluster project off Sandakan to a West Malaysian listed company, Shafie questioned why local firms were not given front-line roles.
“I just want to ask about the state government’s policy. We must have a clear stand when it comes to defending Sabah’s raw materials.
“Petronas cannot just go around awarding our resources without engaging us directly,” he said.
Masidi responded that Sabah’s participation is guided by the Commercial Collaboration Agreement (CCA) with Petronas, which includes a joint committee mechanism to determine state involvement in the sector.
“So far, there is nothing that Petronas has given to Sarawak that it will not also give to Sabah,” he said.
But he acknowledged that Sabah’s strategy differs from Sarawak’s more assertive approach.
“We work quietly — and we see results. Others may talk, but have no outcomes,” he said. - July 8, 2025
