The extraction of crude oil and condensates contributed RM15.46 billion to Sabah’s gross domestic product in 2021.
Therefore, the oil and gas sector is very important to the Sabah Maju Jaya Development Plan and Petronas had agreed to nurture and mentor locals, as the Sabah government is limiting work permits to ensure companies prioritise Sabahans in the oil and gas industry, as well as to promote initiatives from the OGSE Blueprint, which Sabah SMEs in the sector can harness opportunities made available to them to unlock value creation.
In 2022, Petronas paid additional five per cent tax on oil sales issued in Sabah, besides the five per cent royalty. Petronas’ contractors also pay sales tax to the Sabah Government on oil sales issued in Sabah. Small and medium enterprises (SMEs) make up 95 per cent of Malaysia’s Oil & Gas, Services and Equipment (OGSE) industry.
