RM8.88 Billion Oil and Gas, Energy Project For Sabah

The RM8.88 billion Oil and Gas, Energy Hub Project at the Sipitang Oil and Gas Industrial Park (SOGIP) will transform Sabah’s energy sector. The project is a collaboration between Sabah Oil and Gas Development Corporation (SOGDC), which manages SOGIP, and Gibson Shipbrokers Limited, a global maritime, energy, and associated industries speciality company. The project includes a state-of-the-art port which will pivot additional investments in energy infrastructure, technological advancements, and industrial expansion.

Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said on 11 February 2025 at the launching ceremony of the project, held at the Sabah International Convention Centre (SICC), Kota Kinabalu, that the project will establish Sabah as a key hub in Southeast Asia's energy sector. "The project will spur more opportunities for collaboration, innovation, and development in the oil, gas, and energy sectors, which will benefit the industry and local communities," Hajiji said.

"The energy storage and distribution systems within SOGIP will support Malaysia's long-term renewable energy goals. SOGIP will bridge the transition from fossil fuel dependency to greater adoption of renewables, such as solar and wind power, in Malaysia's energy mix.” The SOGIP development emphasises environmental sustainability which is in line with Malaysia’s moves toward reducing its carbon footprint; the integration of cleaner energy sources, such as LNG; economic resilience; energy independence; and sustainable industrial growth.

Hajiji said that industry players must comply with the state government’s requirement for local content and development including employment, skills training, and community empowerment. The Sabah Local Content Council through SMJ Energy serves as a collaborative platform for industry stakeholders to identify opportunities in enhancing capacity building for local content in the Oil and Gas industry.