Kota Kinabalu: Sabah’s very own local oil and gas player, Puncak Kinabalu Oil and Gas Sdn Bhd (PKOG), aims to bring robotic piping fabrication technology to Sabah.
“The equipment from China is expected to arrive next year for a robotic fabrication system that will serve the company’s fabrication yards, namely, one in Beringgis, three in Sipitang and one in Labuan,” said PKOG Chief Executive Officer, Sharki S Hussin.
“Perhaps we will be the only one in Sabah with a robotic system for piping fabrication,” he said at the 13th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE 2026).
The announcement followed the signing of a memorandum of understanding targeting robotic fabrication capabilities during the recent SOGCE 2026, with Sharki saying PKOG’s goal is to develop a robotic fabrication shop.
He said PKOG is able to be where it is today thanks to genuine joint ventures (JVs) rather than arrangements designed just to satisfy tender requirements.
The company was born out of a partnership with TMM, which he described as likely Malaysia’s biggest pipeline installation and maintenance company.
TMM refers to TMM Engineering Services Sdn Bhd, an established Malaysian mechanical engineering, procurement, construction, and commissioning (EPCC) contractor.
Sharki said when TMM secured a project on the Sabah-Sarawak pipeline, PKOG began by handling civil work including foundation work and grass cutting.
“TMM then helped establish PKOG as a new company and trained us in everything from operations, method statements and repair procedures to governance and licensing, treating PKOG not as a subcontractor but as a genuine partner.
“After five years, TMM stepped back and allowed PKOG to grow independently.
“That is the right way. Because as a Sabah vendor we cannot be a sleeping partner forever. We must become an engineering partner, a project management partner and an execution partner,” Sharki said.
He said that if after five years a local vendor still depends on the same partner to obtain work, the vendor development objective has not yet been achieved.
He said PKOG always views JVs as a platform for learning and capability building.
On the government’s target for 60 per cent local participation in oil and gas work in Sabah, Sharki said he prefers to see that share spread across many Sabah contractors rather than concentrated in one or two.
He noted that there are currently around 300 participants in the industry, each with their own expertise, but said he does not see many of them moving up to larger projects.
He said good collaboration can change that, citing several collaborative works his company did with other companies.
“If we have a good partnership, I believe we can get and execute even bigger projects,” he said.
PKOG needs projects, he said, but does not want to take all projects.
“We deliberately keeps our focus to three areas, namely, gas pipeline installation, mechanical maintenance and fabrication, so that other scopes including valve servicing, civil work and electrical work can go to other local companies.
“The more opportunities given to Sabah vendors and contractors, the stronger Sabah will become. We do not want to be spectators in our own land. We want to be coordinators. We want to be champions in our own land. In other places champions among contractors have already been created, so why not this time for Sabah?” he said.
He called on Sabahan firms with more than 10 years of experience as main contractors to train newer players and said the industry needs to unite.
He said with almost 20 years of experience in the industry, Sabah vendors may simply be lacking confidence rather than capability.
“PKOG currently works with three to four contractors under our contracts and help them across three fronts.
“The three most important things are, we help from the execution side, we help from the equipment side and we help from the financing side. Then we will see more Sabah contractors who are competitive,” he said.
He said rather than the industry standard of 30-day payment cycles, PKOG pays its subcontractors every 15 days, allowing them to submit invoices on that cycle and settling payment immediately once all documentation is approved.
“Sabah needs to believe that they are capable of becoming main contractors,” Sharki said.
