KOTA KINABALU: Sabah’s oil and gas industry has undergone significant restructuring and revitalisation under the current Gabungan Rakyat Sabah (GRS) administration, with real economic benefits for the state, contrary to recent claims made by former Sabah Oil and Gas Development Corporation (SOGDC) CEO Abdul Kadir Abdullah Damsal.
In a firm rebuttal, Political Secretary to the Chief Minister Datuk Dr Roland Chia said Abdul Kadir’s remarks misrepresented the facts and overlooked the period of stagnation that occurred under his own leadership at SOGDC.
“Let’s be clear: Sabah International Petroleum (SIP) was in financial distress before its restructuring by the current government. The intervention by the GRS administration was not cosmetic, it was necessary to protect Sabah’s fiscal stability and reclaim control over strategic energy assets,” Dr Chia said in a statement.
He explained that the formation of SMJ Energy was a strategic move to consolidate state energy interests, initiate direct upstream participation and deliver tangible value to the people of Sabah.
“SMJE was created to do what previous structures failed to do. It’s now an active player in the industry, not a passive observer,” he said.
According to him, under the leadership of the present government, the Sipitang Oil and Gas Industrial Park (SOGIP) has regained investor confidence. A key example, he said, is Esteel Enterprise Sdn Bhd’s RM31 billion investment, a clear signal of the progress being made.
Dr Chia pointed to recent milestones that reflect Sabah’s growing role and influence in the oil and gas sector.
“Post-Commercial Collaboration Agreement (CCA), the facts speak for themselves. SMJ Energy now holds equity in key oil and gas blocks. Sabah Energy Corporation (SEC) has secured onshore gas distribution rights for the first time in our state’s history,” he said.
“In 2024 alone, RM2 billion worth of contracts were awarded to Sabah-based companies. These are not just numbers, they translate into real jobs and local economic growth,” he added.
He also stressed that while Sabahans have always contributed to the oil and gas sector, what sets the current environment apart is institutional empowerment and leadership.
“SMJE and SEC are no longer sidelined. They are leading players, and Sabahans are occupying key leadership roles, not because of luck, but because of proactive and deliberate state government policy,” said Dr Chia.
Addressing criticisms related to SMJ Energy’s non-participation in bidding for an exploratory oil and gas block on Sabah’s East Coast, Dr Chia clarified that Finance Minister Datuk Seri Masidi Manjun’s explanation in the State Assembly was made in direct response to a question posed by Senallang Assemblyman Datuk Seri Mohd Shafie Apdal.
“To twist that factual explanation into a personal attack is misleading and clearly aimed at politicising a technical issue,” he said.
Dr Chia called on all parties to focus on Sabah’s progress and to avoid undermining state institutions that are delivering real results for the people.
“The facts are clear. Sabah is moving forward in the oil and gas sector, and we should build on this momentum, not distort it for political mileage,” he said.
