Sabah To Receive 40 Percent Stake In O&G Project

Sabah and the national oil company, PETRONAS, have agreed to let Sabah have a 40 per cent stake in the floating liquefied natural gas (FLNG) facility project in the state. Sabah will also receive a 20 per cent stake in projects undertaken by PETRONAS at newly discovered oil and gas fields off the coast of Sandakan.

Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor shared this latest development, describing it as one of the significant achievements resulting from the close cooperation between the State and Federal governments.

“Sabah is continuing the pace in participating actively in the state’s oil and gas industry,” Hajiji said when officiating the Kalabakan Parliamentary Constituency Jelajah Rakyat Programme and MADANI Rahmah Sales Programme on 1 August 2026, Kalabakan.

“Sabah will benefit greatly from the strong relationship between the State and Federal governments. Nearly 40 foreign diplomats or high commissioners have met with me over the past five years. They are attracted to our investor-friendly policies.” Hajiji said that existing industrial areas, particularly the Kota Kinabalu Industrial Park (KKIP) and the Sipitang Oil and Gas Industrial Park (SOGIP), are reaching full capacity from strong investor demand.

Sabah is expanding new industrial zones, including the Palm Oil Industrial Cluster (POIC) in the east coast and industrial parks based on the Blue Economy. For Kalabakan, the proposed development of the New Kalabakan Township, covering approximately 1,000 acres, is expected to become the district’s new growth centre through a range of planned developments including, roads and the construction of a Customs, Immigration and Quarantine (CIQ) complex, which will serve as Sabah’s entry point from North Kalimantan, Indonesia.