00:00More Sabahan companies are breaking into high-value segments of the oil and gas supply chain,
00:06with vendor success stories growing nearly 800% since 2022.
00:11In an exclusive interview with FMT, SMJ Energy's Nguyen Berhad Executive Director Terry Busing
00:16said there has been a surge of Sabahan firms now holding oil and gas contracts
00:21across upstream, midstream, and downstream services.
00:25He said that in 2022, only 10 local companies were honoured for upgrading their technical capabilities
00:32and securing major technical and high-value contracts.
00:35Two years ago, it went up to about 25.
00:39Early this year, it went up to 88.
00:42This company has evolved from doing minor maintenance to major complex maintenance.
00:48According to Terry, head of SMJ Energy's OGSE and corporate division,
00:53several local players have successfully entered one's inaccessible niches,
00:58such as well-services and subsurface operations.
01:02You know, the major hook-up commissioning and also MCM contract,
01:09no Sabahan have held this contract since day one.
01:14Last year, all the contracts in Sabah were actually dominated, controlled by Sabahan Company.
01:20Again, some of them through partnership.
01:23Terry added that more vendors are also being recognised for offering new services
01:27such as third-party logistics and accommodation vessel services,
01:32showing local diversification in the broader value chain.
01:36The state's growing technical foothold comes as national oil company Petronas
01:40announced plans to invest RM2 billion over the next four to five years
01:45on exploration and project development in Sabah, including deep water fields,
01:50enhanced oil recovery projects, and gas developments.
01:54He emphasised that youth in Sabah have a critical opportunity to participate in this future
01:59in line with industry demand.
02:01So as far as the youth is concerned and opportunity to work in Sabah,
02:06in oil and gas services, you know, I think the opportunity is there.
02:12I think what's more important right now for us in SMJ Energy and also Sabah State
02:21is to make sure that we also have a handle on, you know, what kind of demand
02:28of skilled labourer or skilled technician or skilled engineer that is needed
02:36to support the whole ecosystem of oil and gas.
02:40Pan Yujo, FMT.
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