Kota Kinabalu: Finance Minister Datuk Seri Masidi Manjun has called on Sabahan Oil and Gas Services and Equipment (OGSE) companies to seize emerging opportunities in the industry.
“This is not just a forecast; it’s a call to action.
“Local businesses must rise to the challenge by meeting Petronas’ stringent standards and forging strategic partnerships to unlock new capabilities,” he said in conjunction with launch of the Kinabalu Activity Outlook (KAO) 2025-2027, a three-year roadmap outlining upstream, downstream, gas and maritime activities in Sabah.
KAO, jointly unveiled by the State Government and Petronas on February 28, 2025, aims to provide local OGSE companies with valuable insights into upcoming opportunities with Petronas, its subsidiaries and other Petroleum Arrangement Contractors (PACs).
More than 200 representatives from Sabahan OGSE companies attended the event, where ambitious targets were announced to boost local participation.
Following a surge in contracts awarded to Sabahan businesses – from RM613 million in 2021 to over RM2 billion in 2024 – Sabah and Petronas now aim for a 50 per cent to 100pc increase in local job awards and contracts by 2027.
Petronas Vice President of Group Procurement Rashidah Alias reaffirmed Petronas’ commitment to supporting Sabah’s OGSE sector.
“By working together, we can create a thriving, sustainable industry that benefits all Sabahans,” she said.
Industrial Development and Entrepreneurship Ministry’s (Mide) Permanent Secretary Datuk Thomas Logijin, who represented the State Government, emphasised the significance of this initiative. “This is a pivotal moment for Sabah’s OGSE sector. By leveraging KAO, embracing innovation and actively seeking new opportunities, we can unlock the full potential of local companies,” he said.
A key driver of this initiative is the Sabah Local Content Council, chaired by SMJ Energy Executive Director for OGSE and Corporate Terry Biusing. Comprising representatives from the Government, Petronas, operators and local OGSE associations, the council plays a vital role in coordinating, guiding and supporting initiatives to increase local participation.
In 2024, the State Government and Petronas also established a Joint Task Force (JTF), which successfully implemented mandatory partnership guidelines between large industry players and local businesses. This initiative has led to greater participation of Sabahan companies in high-value and complex projects.
The launch of KAO 2025-2027 underscores the shared commitment of the State Government and Petronas to building a robust, sustainable, and inclusive oil and gas industry – one that will serve as a cornerstone of Sabah’s economic future.
