Kota Kinabalu: Sabah’s oil and gas contracts must leave behind skilled Sabahans and companies capable of leading major projects, rather than be measured solely by the number of awards secured, said State Finance Minister Datuk Seri Panglima Masidi Manjun.
He said the State’s local content agenda must move beyond participation towards building expertise, transferring technology and retaining long-term economic value in Sabah.
“The most important outcome of any contract is not the document that is signed today. It is the capability that remains after the work has been completed,” he said.
Speaking at the Sabah Shell Contract Award Ceremony at Plaza Shell here Thursday, Masidi urged companies receiving contracts to invest seriously in Sabahan talent and provide meaningful career pathways.
“Train our engineers. Develop our technicians. Provide meaningful career pathways. Transfer knowledge and technology. Give our young people the opportunity to work on increasingly complex and high-value projects.
“The objective was to ensure more Sabahans eventually lead companies, manage major projects, develop technologies and make key technical and commercial decisions,” he said.
Masidi said the awards, involving complex and specialised areas of deepwater operations, demonstrated that local capabilities were growing and gaining the confidence of major industry operators.
However, he said the real value of local content went beyond the number of contracts awarded to Sabah companies.
“It must also be measured by how many local companies could deliver world-class work, how many Sabahans acquired high-value skills and how much economic value remained and continued to grow in the State,” he said.
Masidi highlighted the Solvantis-Evolusi Bersatu and IPS-Emas Dinamik joint ventures, together with Franklin Offshore’s involvement as a technical partner, as examples of partnerships that could strengthen local participation through expertise, technology and knowledge sharing.
“There is nothing wrong with learning from the best. Sabah companies should actively pursue partnerships that help them acquire capabilities, improve standards and eventually compete independently at the highest levels of the industry.
“The strongest model of local content is therefore not simply about reserving opportunities for local companies. It is about ensuring that local companies use those opportunities to become stronger, more sophisticated and more competitive,” he said.
Masidi also reminded local companies that greater opportunities carried greater responsibilities, including investment in people, technology, safety, governance and operational excellence.
“Being a Sabah company should open the door to opportunity, but ultimately, performance must determine how far you go. Cooperation between the State Government, Petronas, Shell, SMJ Energy and local industry players has helped make the progress possible.
“Through the Commercial Collaboration Agreement and wider local content initiatives, the State Government remained focused on securing greater and more sustainable value from Sabah’s resources.
“Sabah is no longer merely an observer. We are owners, contributors and catalysts shaping the future of our oil and gas industry,” he said.
Masidi said Sabah’s longer-term ambition was to become a recognised centre of energy expertise, investment, innovation and talent, with local companies competing beyond the State and Sabahan professionals recognised nationally and internationally.
“The capabilities developed through oil and gas today should also form the foundation for the wider energy economy of tomorrow.
“Today’s contract awards may be measured in years, but the capabilities, partnerships and opportunities they create can last for generations,” he said.
