How Sabah won over Petronas: Hajiji decided to present Sabah’s case to the national oil corporation

LocalPolitics
12 Sep 2025 • 7:22 AM MYT
Daily Express
Daily Express

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Kota Kinabalu: Sabah will likely not be enjoying billions of ringgit in oil and gas revenue today had Chief Minister Datuk Seri Hajiji Noor not taken the bold step of meeting Petronas’ top leadership to clearly spell out what the State wanted.

Recounting the early days of his administration, Hajiji said he sought the help of a Sabahan oil and gas expert based in Beijing to guide the State Government.

“I told him this was national service, and he came without asking for anything in return. With his help, we formed a special committee,” he said.

Months later, Hajiji, together with State Finance Minister Datuk Seri Masidi Manjun and his then senior private secretary Datuk Armizan Mohd Ali, met Petronas Chairman Tan Sri Mohd Bakke Salleh and its President and CEO at the Petronas Twin Towers in Kuala Lumpur.

“When we presented our proposals to the Chairman and President, I told them, ‘Tan Sri, just look, don’t comment yet.’ After going through it, the first thing he said was,‘Now we finally know what Sabah wants.’ Before this, they (Petronas) never knew what Sabah wanted because people spoke here and there but nothing reached Petronas,” said Hajiji.

That breakthrough, he said, eventually led to then Second Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz engaging him further, which paved the way for Sabah and Petronas to sign the landmark Commercial Collaboration Agreement (CCA).

“Two or three months later, we succeeded in signing the CCA with Petronas. When you negotiate properly and present what is fair, you will get it,” he stressed.

The outcome, he said, has been unprecedented for Sabah.

“Today, a large portion of our State revenue comes from oil and gas. We now hold 50 per cent in the Samarang oil field, 25 per cent in Samur and recently another 25 per cent in ZLNG. More negotiations are ongoing. If these succeed, Sabah’s revenue will grow even further,” he said.

Hajiji underscored that such achievements were the result of a clear and firm policy direction under the Hala Tuju Sabah Maju Jaya (SMJ) development plan.

“This has never happened before. With determination, honesty and the right approach, we have shown that Sabah can chart its own path and secure what is due to us,” he said when officiating the 28th Sabah District Officers Conference at Shangri-La Tanjung Aru, Thursday.

The Chief Minister said the SMJ framework is not only about unlocking oil and gas revenues but also about investing in people, especially through education.

“In four years as Chief Minister, we have allocated RM1.3 billion for education. Scholarships were increased from RM50 million to RM138 million, and we will seek an additional RM20-30 million next year because many children from poor families are excelling academically and deserve support,” he said.

To further ease the burden, Hajiji said the State Government set up the Sabah State Education Fund to complement existing scholarships and loans.

“Through this fund, we have already helped more than 10,000 Sabah students by covering their first-year university fees until they secure scholarships or loans. At the very least, each student receives RM10,000,” he added.

Other initiatives include RM200 cash assistance for all Form Five students before exams, benefitting about 40,000 students annually, and a RM300 allowance for university students to return home during festive seasons.

“I got the idea after some students texted me directly asking for bus fare to go home. That is why we created this aid – because many of our families are still struggling,” he said.

In addition, the State provides one-off RM2,000 assistance for underprivileged students pursuing degrees and RM1,500 for diploma studies.

“Education must be prioritised because it is the key to Sabah’s success and progress in the future. If our young people are educated, skilled and knowledgeable, Sabah will advance,” said Hajiji.