KOTA KINABALU: Sabah companies have made historic breakthroughs in the oil and
gas services and equipment (OGSE) industry, as several local companies have been awarded major contracts, including some first in certain work categories in recent months.
The contracts include Engineering, Procurement, Construction and Commissioning, Maintenance, Construction and Modification, Turnaround Maintenance, Integrated Wells Services, Third-Party Logistics and Marine Vessel Supply.
These new contracts are expected to generate approximately 1,000 job opportunities for Sabah companies across various skill sets and disciplines.
Under the championship of the Sabah Government, this success is fuelled by
strategic partnerships with experienced technical service providers, a commitment to local job creation, and a focus on venturing into new frontiers of OGSE services without compromising costs, safety, quality and project schedules.
Following the signing of the Commercial Collaboration Agreement between the Sabah Government and PETRONAS in December 2021, the values of local contract awards in OGSE in Sabah have increased from RM341 million to RM780 million and the number of local contractors from 263 to 475 in 2023.
“It is indeed a remarkable moment for Sabah because we have proven that our local companies can compete in the big OGSE leagues.
“I hope that this upward trend in local participation in OGSE will continue to rise and more Sabahans will continue to seize the opportunity and take advantage of the oil and gas industry,” said the Finance Minister and Chairman of SMJ Energy Sdn Bhd, Datuk Seri Masidi Manjun in a statement.
SMJ Energy’s Executive Director for OGSE and Corporate Terry Biusing said Sabah
companies are now securing a larger share of local OGSE contracts in Sabah.
“Revenue projection for Sabah OGSE companies is expected to exceed RM2 billion in 2024, with over 60 companies making between RM1 million and up to over RM300 million of revenue up to August 2024.”
SMJ Energy remains dedicated to supporting Sabahan companies in their growth journey in close collaboration with PETRONAS, oil and gas companies and local contractor associations in Sabah through a newly established Local Contents Council for OGSE, chaired by Terry Biusing.
Through increased local opportunities, strategic partnerships, and a focus on skill development, Sabah is well-positioned to become a leading force in the state and national OGSE landscape.
