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I AM appreciative that some ADUNS and a number of Sabahans, including parents and professionals who have contacted me on my article last week “To ADUNs/MPs: Change or be changed”. Quite naturally, their primarily concern is on employment and business opportunities for Sabahans in the oil and gas industry. I have also urged YBs/MPs to mobilize Sabahans in these 2 regards.

A few have asked me for elaboration which I shall endeavour to do in this article.

All information and data in this article on the development of oil and gas by Hajiji are public information and can be obtained/verified in the press or internet easily.

FAR-REACHING PROGRESS IN OIL AND GAS INDUSTRY BY HAJIJI.

This progress is real. It is already happening. It will grow much bigger cos of more new investments and explorations in Sandakan and Tawau.

Since Hajiji became Chief Minister on 28 September 2020, Sabah's oil and gas [O&G] industry has undergone a dramatic, unequivocal and consequential structural shift. Under Hajiji’s leadership, Sabah has moved from a model of pure resource extraction to one emphasizing local equity, active participation, and value-added downstream services, which has directly expanded and transformed into opportunities for Sabahans in employment and business.

HAJIJI’S MAJOR POLICY SHIFTS IN DRIVING GROWTH IN OIL AND GAS.

One of Hajiji first major priorities in 2020 was to regain rights from PETRONAS. As expected, it was hugely complex and formidable. The resistance from the Federal Government and Petronas, after 50 years of subservience/silence from Sabah leaders, must have been tremendous. RM in billions and billions have been taken out of Sabah without value add.

Hajiji and his partner in chief, Masidi have persevered. No public political outburst. No lamentation. No expression of anger or frustration. Just Hajiji’s style - quiet and firm diplomacy.

Finally, the reward came! In less than 1 year of negotiations. It was a miracle!

 [1] CCA IS THE BIGGEST ECONOMIC BREAK-THROUGH FOR SABAH.

Unbelievable but true, within a year, the Commercial Collaboration Agreement [CCA] was signed between the Sabah State Government and PETRONAS in December 2021. This landmark agreement is the foundation of the state's recent O&G expansion. IT ENSURES SABAH HAS A DIRECT SAY AND GREATER REVENUE-SHARING IN UPSTREAM, MIDSTREAM, AND DOWNSTREAM PETROLEUM ARRANGEMENTS. BEFORE SABAH HAS NO SAY AT ALL.! The CCA is the foundation, the corner stone that is now the engine of growth of Sabah’s industrial revolution.

Please google for details of CCA.

I urge all ADUNs/MPs who want to help Sabahans to get into the oil and gas industry to peruse the CCA with due diligence.

[2] SMJ Energy Sdn Bhd:

Hajiji established SMJ Energy. Masidi became its first chairman. In a very short time, SMJ Energy has become, by far, the most profitable GLC and largest dividend contributor to the Sabah Government.

SMJ Energy is a wholly-owned energy investment vehicle of the Sabah Government. It acquires and manages profitable stakes in major assets. Its portfolio now includes a 50% participating interest in the Samarang Production Sharing Contract [PSC], a 25% equity stake in the Sabah Ammonia Urea [SAMUR] plant, and a 10% stake in the PETRONAS LNG9 facility.

Most importantly to Sabahan investors and job seekers, SMJ Energy is the vehicle for the implementation of CCA.

TREMENDOUS BUSINESS OPPORTUNITIES FOR SABAHAN COMPANIES FROM HAJIJI’S TRANSFORMATION IN OIL/GAS AFTER CCA.

Table 2 and table 3 below are self-explanatory.

Two very important features:

They show the tremendous improvement/increase in the quality and quantity of participation of Sabahan companies after Hajiji’s CCA with Petronas.

More crucial for the future of Sabah is that under Hajiji’s initiative, Sabahan companies are actively securing primary licenses in these sectors, shifting away from low-tier subcontracting.

NUMEROUS JOB OPPORTUNTIES FOR SABAHANS!!

Table 4 gives samples of direct employment and professional opportunities for Sabahans.

These jobs require skill certification and proficient training but the pay is good. Much better than anything from working in W Malaysia.

Table 4: Direct Employment & Professional Roles

With massive capital injections—such as the RM30 billion ESTEEL Green Steel project and the RM8.8 billion PFLNG 3 facility—major operators [like Shell, Petronas, and local vendors] are aggressively recruiting Sabahan talents.

HAJIJI’S MANDATES TO SAFE-GUARD SABAHAN PARTICIPATION IN O&G.

[a] Hajiji’s safeguards for Sabahans’ business participation:

The 30% Spending Target in Sabah:

In2024, Sabah and Petronas established a joint mandate to award at least 30% of all OGSE spending within Sabah strictly to qualified Sabahan companies.

Hajiji’s Revenue Benchmark for Sabahan companies:

Hajiji initially set a baseline target of securing at least RM1 billion annually in local contract awards [which represented about 20% of the total spend at the time]. Local companies have consistently exceeded this, pulling in over RM1.5 billion to RM2 billion.

[b] Hajiji’s safeguards for employment for Sabahans:

Hajiji has provided 2 very conducive mandates to encourage Sabahans to go for jobs in O&G.

[1] Non-Technical Roles: Mandated to be 100% filled by Sabahans. [2] Technical & Skilled Roles: Mandated to be at least 80% filled by Sabahans.

***The median monthly wage for O&G is at approximately RM 7,900, which is more than double the national median formal wage of RM 3,167. ***Salaries for senior positions are in 10s of thousands of RM.

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: [email protected]