Kota Kinabalu: The value of oil, gas and energy services and equipment (OGSE) contracts awarded to Sabah-based companies has surged from RM341 million in 2021 to more than RM2 billion annually by the end of 2025, the Sabah Oil and Gas Services Council (SOGSC) said.
The growth was attributed to local content initiatives under the Commercial Collaboration Agreement (CCA) signed between the Sabah Government and Petronas in December 2021, which established the dedicated Sub-Committee 4 on OGSE to develop a competitive local business ecosystem.
“The number of active Sabah-based OGSE contractors also increased from 263 to 475 over the same period, while total active contracts rose by 275 per cent, from 133 to 499,” SOGSC said in a statement following the inaugural Oil and Gas Services and Equipment Conference and Exhibition Sabah 2026 (OGSE Sabah 2026), held from June 4 to 6 at the Sabah International Convention Centre.
Sabah is now targeting at least 60 per cent local contract holdership by 2026, up from nearly 40 per cent previously, supported by an estimated RM2.7 billion worth of long-term maintenance, construction and modification projects.
Local companies have secured medium- to high-complexity contracts, including Production Support Vessel services for deepwater drilling, gas turbine maintenance and offshore Hook-Up and Commissioning works.
On workforce development, SOGSC said the State is working towards achieving a fully Sabahan workforce for corporate and non-technical support roles, and at least 80 per cent Sabahan participation in technical and engineering positions.
Organising Committee Chairman Datuk Thomas Logijin said the success of Sabah companies in securing offshore contracts reflected the confidence of industry operators in local capabilities.
He stressed that vendors must continue to meet international standards in safety, quality, cost, scheduling and technical performance.
Deputy Chief Minister III and Industrial Development, Entrepreneurship and Transport Minister Datuk Ewon Benedick, in his closing address, unveiled the Sabah OGSE Five-Year Roadmap (2026–2030), which will be tabled to the State Cabinet for endorsement.
The roadmap is built on five strategic pillars aimed at moving local companies into higher-value technical fields such as deepwater drilling support and advanced engineering fabrication, aligning TVET institutions and universities with offshore industry certification and digital skills requirements, providing dedicated grants and bridging loans for local entrepreneurs, and strengthening local content implementation through compliance mechanisms to ensure economic benefits remain within Sabah.
SOGSC Advisor Datuk Willie Ng said the strong turnout at the conference reflected the growing momentum of Sabah’s energy sector.
“With the CCA and the 2026–2030 OGSE Roadmap, we are not just generating revenue—we are securing lasting ownership of our industry, ensuring its wealth, talent and leadership remain with Sabahans for generations,” he said.
The event, jointly organised by the Ministry, SOGSC and the Sabah Bumiputera Petroleum Contractors Association (PKPBS) with the support of SMJ Energy, attracted more than 5,000 visitors and 200 exhibitors, including secondary school and university students.
