Kota Kinabalu: Sabah oil and gas vendors are being held back not by a lack of capability, but by limited opportunities to build the track record and experience needed to lead projects rather than merely execute them, according to Puncak Kinabalu Oil and Gas Sdn Bhd (PKOG) Chief Executive Officer Sharki S Hussin.
“The real issue is not who can do the job but who is given the opportunity to prove they can do the job,” he said at the 13th Sabah Oil, Gas and Energy Conference and Exhibition.
“Sabah vendors have a qualified workforce, commitment and experience. Many have been involved in major oil and gas projects for years,” he added.
Sharki was among the speakers invited to discuss local vendor empowerment and strengthening Sabah’s energy supply chain during the conference, organised by Midas Events Management with the support of the State Government and the Sabah Convention Bureau. Daily Express is the event’s media partner.
Drawing on his two decades of industry experience, Sharki said Sabah does not lack talent or determination. What local companies need, he said, is greater exposure to larger and more complex projects.
“What is missing is not capability but the opportunity that builds experience as project leaders, not just project executors,” he said.
He said PKOG itself demonstrates that when given the opportunity, a Sabah company can develop expertise in gas pipeline installation, maintenance and project execution, enabling it to compete alongside established industry players.
According to Sharki, the gap between Sabah companies and those from Peninsular Malaysia or Sarawak is not due to capability.
“Peninsular companies were simply given opportunities earlier to build their track records, networks and financial strength,” he said, adding that Sabah vendors are becoming increasingly competitive.
He said the key factor separating companies that consistently secure contracts from those that do not is not pricing or company size, but credibility, proven performance and client confidence.
“The problem is that track record cannot be built without opportunity. Even though we have the expertise, if we are not given the opportunity, we cannot build clients’ confidence,” he said.
Sharki said PKOG has been operating in the oil and gas industry for almost a decade, spending its first five to six years working solely as a subcontractor before progressing to become a main contractor.
He said the company invested heavily in fabrication yards, equipment, systems, licences, competency development and workforce training before earning the confidence of clients through consistent performance and delivery.
He believes many Sabah vendors possess similar capabilities but require opportunities to demonstrate them.
“Every tender requirement lists experience as a criterion, but how can a Sabah contractor gain that experience if they have never been given a platform to perform?” he said.
Sharki welcomed recent licensing achievements by Sabah vendors, including contractors that have secured licences for offshore gas pipeline installation and downstream gas activities.
He said more local contractors should be encouraged to obtain similar capabilities and licences, pointing to PKOG as an example of how a Sabah company can grow when provided with the right opportunities.
“Capability comes from opportunity and experience,” he said, calling for more strategic projects to be entrusted to Sabah vendors to accelerate the development of local industry capabilities.
