Kota Kinabalu: Dayak Chamber of Commerce and Industry (DCCI) President Datuk Allan Keripin Nangkai said Sarawak’s century-long experience in oil and gas will be useful when partnering with Sabah companies.
“We have been in oil and gas for more than 100 years. Some of our companies are well established. We want to team up with Sabahan companies to share our experience and help them grow,” he said during the forum’s question and answer session.
He said this at the recent Kadazandusun Chamber of Commerce and Industry (KCCI) – Dayak Chamber of Commerce and Industry (DCCI) Oil and Gas Business Opportunities Forum at the ITCC Grand Ballroom.
When asked about using Sarawak’s Petros licenses in Sabah, SMJ Energy Sdn Bhd’s Oil and Gas Services and Equipment (OGSE) and Corporate Executive Director Terry Biusing pointed out partnership while maintaining Sabah’s streamlined approach.
“My advice is to work with Sabahan companies. Get them to apply for the license,” he said.
He said Sabah deliberately chose not to create duplicate licensing systems, instead focusing on monitoring and transparency through existing Petronas frameworks.
“We do not want to create another unnecessary level of control. We want to work with Petronas,” Terry said, pointing out SMJ Energy’s efficient, results-focused approach that delivers through policy changes rather than adding more bureaucracy.
Meanwhile, Sabah Finance Minister Datuk Seri Masidi Manjun pointed out the need for strong safeguard against fake participation saying: “The reason why local partners must hold at least 30 per cent is because we do not want non-Sabahan companies using their drivers or general cleaners as a 10 per cent or 15 per cent equity holder. I know many do this. That is over now. We need serious, genuine local participation.”
The transformation of Sabah’s oil and gas services sector reflects more than just economic success, it shows how smart government action, combined with industry collaboration and transparent processes, can create opportunities while maintaining the highest standards.
Through SMJ Energy’s leadership and the State Government’s vision, Sabah has created a monitoring system that tracks not only revenue and contracts but also company capabilities across different work areas.
The organisation keeps detailed profiles of the top 10 Sabahan companies in each major work category and monitors services being exported by local companies, showing their growing competitiveness beyond State borders.
Regular performance reviews, compliance checking, tender reviews and pre-tender briefings ensure continuous improvement and fair processes.
Terry said the establishment of the Sabah Local Content Council and Joint Task Force for Mandatory Partnerships provides ongoing governance and support for the sector’s development.
“This systematic approach has created a model that can be copied by other regions, one that prioritises local empowerment, maintains international standards and delivers measurable results,” Terry said.
As the sector continues to grow, with companies now exporting services beyond Sabah, the State is well-positioned to become not just Malaysia’s energy hub, but a regional centre of excellence for oil and gas services.
“The opportunity is huge. We spend about RM7 billion annually on oil and gas in Sabah. That opportunity is there for Sabah,” he said.
With continued focus on building capabilities, strategic partnerships and maintaining world-class standards, Sabah’s oil and gas transformation stands as proof of what can be achieved when government vision meets industry expertise and local determination.
