Masidi presenting the certificate of appointment to Terry as Sabah Local Content Council Chairman in May 2024
KOTA KINABALU: Sabahans have the golden opportunity to benefit from the Oil and Gas Services and Equipment (OGSE) industry as the State is set to become an OGSE powerhouse through a strategic collaborative effort with PETRONAS, through its oil and gas company, SMJ Energy Sdn Bhd.
Finance Minister Datuk Seri Masidi Manjun, who is also Chairman of SMJ Energy, urged Sabahans across all socioeconomic backgrounds to take full advantage of the rapidly growing opportunities in the OGSE industry.
“This is the moment for local talents to step up, whether by starting their own OGSE businesses or joining existing local companies. For years, Sabahans have called for more opportunities in oil and gas; now is the time to make it happen,” he said.
SMJ Energy Executive Director (OGSE and Corporate) Terry Biusing underlined SMJ Energy’s critical role in facilitating these efforts, pointing to the successful collaboration between the State, PETRONAS and local OGSE players.
“The synergy between the State, PETRONAS and local OGSE players has created a vibrant environment for economic growth, and we’re already seeing more local companies growing and being awarded OGSE contracts,” he said.
Since the signing of the Commercial Collaboration Agreement (CCA) between the State Government and Petronas in December 2021, Sabahan OGSE companies saw a 38 per cent increase in revenue from 2022 to 2023, securing RM780 million worth of jobs in Sabah, with an overall revenue of RM1.5 billion for services rendered throughout Malaysia.
The number of active local companies has surged by 58pc, with 125 companies now taking the lead in providing OGSE services in Sabah.
The groundwork established in 2023 is set to yield significant benefits in 2024, with projected revenues for Sabah OGSE companies expected to double.
A Sabah Local Content Council consisting of representatives from all oil and gas operators in Sabah, Sabah OGSE industry associations (SOGSC and PKPBS) and representatives from PETRONAS and Sabah, with Terry Biusing as the Chairman was set up in May 2024 to further drive local contractor participation in OGSE under the State Government sponsorship.
With SMJ Energy leading the charge and backed by the full support of both Sabah and PETRONAS, the OGSE industry in Sabah is poised to enter a new era of expansion, seizing opportunities to enhance capabilities and penetrate new markets locally and beyond.
