Sabah O&G Vendors Earned RM2 billion

Sabah’s vendors and businesses in the oil and gas industry – from 2021 to 2024 – recorded total revenue of RM2 billion. Petronas awards contracts to these Oil and Gas Services and Equipment (OGSE) vendors for various O&G-related works. Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said the RM2 billion total revenue achievement by Sabah’s O&G vendors is a testament of the success of the Commercial Collaboration Agreement (CCA) between Sabah and PETRONAS, signed in 2021.

Hajiji remarked that from the RM2 billion revenue, the O&G vendors earned RM1 billion in 2024 alone, a 229 per cent of RM613 million between 2021 and 2024, while the number of Sabah OGSE companies had grown by 91 per cent from 79 to 151. Hajiji shared his thoughts at the commemoration of Sabah OGSE vendors at the Sabah International Convention Centre (SICC), Kota Kinabalu, on 23 January 2025. Hajiji said that the CCA paved the way for mutual collaborations and strategic initiatives including the Sabah Mentorship Programme.

The mentorship programme is a bridge to foster knowledge transfer, collaboration, and development of specific technical capabilities from stakeholders to vendors. The programme is in line with the State’s policy to address challenges for local businesses to play significant roles in the O&G industry. Sabah has mandated that all stakeholders invest in the training and development of Sabahans through short-term and medium-term programs.

The CM said that it is important to empower local companies to undertake critical roles in the oil and gas value chain. They must gain the experience, capabilities and knowledge in order to bid competitively for larger and more complex projects, he said. They must leverage every opportunity to expand and grow; and to enhance their skills and competitiveness, he added.

State Minister of Finance, Datuk Seri Panglima Masidi Manjun, delivered the CM’s speech.