Kota Kinabalu: The Sabah Government defended its restructuring of the State’s oil and gas sector, dismissing criticism by former Sabah Oil and Gas Development Corporation (SOGDC) Chief Executive Officer Abdul Kadir Abdullah Damsal as misrepresenting the facts.
In a statement, Sunday, Political Secretary to the Chief Minister Datuk Dr Roland Chia reminded Abdul Kadir that the Gabungan Rakyat Sabah (GRS) administration had to step in to address the financial distress of Sabah International Petroleum (SIP) and protect the State’s fiscal stability.
“Let’s be clear: Sabah International Petroleum (SIP) was in financial distress before its restructuring by the current government. The intervention by the GRS administration was not cosmetic – it was necessary to protect Sabah’s fiscal stability and reclaim control over strategic energy assets,” he said. SIP was in debt to the tune of RM1 billion.
window.googletag = window.googletag || {cmd: []};googletag.cmd.push(function() {googletag.defineSlot('/22826383987/dailyexpress_inline', [1, 1], 'gpt-passback').addService(googletag.pubads());googletag.enableServices();googletag.display('gpt-passback');});He said SMJ Energy (SMJE) was created to do what previous structures failed to – consolidate state energy interests, enter direct upstream participation, and deliver real value to Sabahans.
“Under the current government, Sipitang Oil and Gas Industrial Park (SOGIP) has attracted investor confidence, with Esteel Enterprise Sdn Bhd’s RM31 billion investment being a prime example.
“The facts post-CCA speak for themselves. SMJE now holds equity in key oil and gas blocks. Sabah Energy Corporation (SEC) has secured onshore gas distribution rights – a historic first.
“In 2024 alone, RM2 billion in contracts were awarded to Sabah-based companies, many of which are now expanding beyond state borders. These are not abstract figures. They represent real jobs and real local economic gains,” he said.
“Yes, Sabahans have long contributed to the oil and gas industry. But what is different now is institutional empowerment.
“SMJE and SEC are no longer observers – they are lead players, and Sabahans are now holding key leadership roles because of proactive state engagement, not luck,” he said.
Dr Roland said Datuk Seri Masidi Manjun’s remarks in the State Assembly were made in direct response to a question by Datuk Seri Shafie Apdal on why Sabah (particularly, SMJE) was not participating in the bidding for an exploratory oil and gas block on the East Coast.
“To twist that context into a personal attack is not only misleading but a deliberate attempt to politicise a factual explanation,” said Dr Roland.
