KOTA KINABALU: Sabah is set to become an Oil and Gas Services and Equipment (OGSE) industry powerhouse, said state Finance Minister Datuk Seri Masidi Manjun.
He said it is made possible through a strategic collaborative effort with Petronas, through its oil and gas company, SMJ Energy Sdn Bhd.
With such a development, Masidi, who is also SMJ Energy chairman, urged Sabahans across all socio-economic backgrounds to take full advantage of the rapidly growing opportunities in the OGSE industry.
"This is the moment for local talents to step up, whether by starting their own OGSE businesses or joining existing local companies.
"For years, Sabahans have called for more opportunities in oil and gas; now is the time to make it happen," he said in a statement.
Meanwhile, SMJ Energy's OGSE executive director Terry Biusing said the synergy between the state, Petronas, and local OGSE players has created a vibrant environment for economic growth, with more local companies growing and being awarded OGSE contracts.
Since the signing of the Commercial Collaboration Agreement between the state government and Petronas in December 2021, Sabahan OGSE companies saw a 38 per cent increase in revenue from 2022 to 2023, she said.
It has secured RM780 million worth of jobs in Sabah, with an overall revenue of RM1.5 billion for services rendered throughout Malaysia.
The number of active local companies has surged by 58 per cent, with 125 companies now taking the lead in providing OGSE services in Sabah.
The groundwork established in 2023 is set to yield significant benefits in 2024, with projected revenues for Sabah OGSE companies expected to double.