Petronas partnership sees Sabah O&G firms surge 250% over 4 years

Free Malaysia Today

Under the Commercial Collaboration Agreement, brokered by chief minister Hajiji Nor, local firms now hold 455 OGSE contracts, up from 133 in 2021.   Read More:  https://www.freemalaysiatoday.com/category/nation/2025/11/10/petronas-partnership-sees-sabah-og-firms-surge-250-over-4-years   Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/11/10/kerjasama-petronas-lonjak-kontrak-syarikat-og-sabah-250-dalam-4-tahun   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTNews

Transcript

00:00The number of oil and gas contracts awarded to Sabah-based companies has surged by nearly 250% over the past four years,

00:09following the signing of a commercial collaboration agreement between Petronas and the state government in 2021.

00:15In an exclusive interview with FMT, SMJ Energy Sunan Bohat Executive Director Terry Busing

00:21attributed the dramatic rise to the combined efforts of the state and national oil company,

00:26coordinated through a dedicated joint subcommittee established under the CCA, brokered by Chief Minister Haji Jinoor.

00:34Known as SC4, the subcommittee has played a pivotal role in driving local participation within Sabah's oil and gas services and equipment sector.

00:43Terry said that in 2021, there were only around 130 contracts in the OGSE sector held by Sabahan companies,

00:50and as of August this year, that number has risen to 155 contracts.

00:56You know, the objective of the subcommittee is to increase the participation of Sabahan company.

01:02And our measure of success is, you know, number of Sabahan company holding as many contracts as possible over time.

01:13Now that would drive, I guess, revenue to those companies.

01:18He added that with some 1,400 active contracts, Sabah firms now hold roughly 33% of the market share.

01:26In 2023, Petronas, as part of its commitment and deliverables under SC4, launched the Kinabalu Activity Outlook,

01:34a strategic forecast of key activities and tenders over the next three years,

01:39that has enabled companies operating in Sabah to be more proactive in their investment and partnership planning.

01:45Terry added that around 169 Sabahan companies are now actively participating in oil and gas tenders,

01:52marking a 260% growth since 2021.

01:56All this was driven by the local content policy by Petronas.

02:03You know, there has been significant increase in the revenue that's earned by Sabahan company.

02:08Over 2 billion ringgit was earned by Sabahan company.

02:12One billion in Sabah, another billion outside of Sabah.

02:17In terms of prioritising Sabahans, the state's local content strategy has matured to centre on three core mechanisms

02:24designed to strengthen the participation of Sabahan firms.

02:27The first one is, we had an agreement with Petronas to ensure that any tender that is below $20 million for upstream, $10 million for downstream,

02:42those tenders are prioritised for Sabahan company.

02:46And this is regardless of the work category.

02:49He said, both the Sabah state government and Petronas have agreed that any major tender involving a non-Sabahan company

02:57must involve a local partner, a move designed to ensure technology transfer and capability building.

03:04Hanyu Jo, FMT.

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