Kota Kinabalu: Sabah’s state-owned energy firms were not involved in the bidding for a lucrative oil block off the east coast because they still lack the expertise and capital needed to compete in large-scale exploration projects, the State Assembly was told.
State Finance Minister Datuk Seri Masidi Manjun said both SMJ Energy and Sabah International Petroleum (SIP) did not submit bids for the Mutiara Cluster production-sharing contract (PSC), which Petronas recently awarded to Peninsular Malaysia-based Dialog Group Berhad.
“Exploration requires billions in capital. At this point, SIP and SMJ are not yet qualified to take on such bidding because we lack the technical expertise,” he said during the question-and-answer session.
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 was responding to a supplementary question from opposition leader Datuk Seri Mohd Shafie Apdal (Warisan-Senallang), who raised concerns about Sabah firms being sidelined in the management of its own oil and gas resources.
“This isn’t about politics. It’s about protecting what belongs to Sabah,” said Shafie. “Why weren’t SMJ or SIP even involved, when the block is right off our coast?”
Masidi explained that the Mutiara Cluster contract was part of an international bid under the Malaysia Bid Round 2025, and it is still at the exploration stage.
“No oil has been extracted yet. But trust me — SMJ has its own involvement, which we will announce later,” he said.
He also stressed that Sabah’s role in the sector is protected under the Commercial Collaboration Agreement (CCA) signed with Petronas, which includes a joint committee to determine the extent of the State’s participation.
“So far, there is nothing Petronas has given to Sarawak that it won’t also give to Sabah,” he said.
Masidi added that while Sarawak had a 100-year head-start in the oil and gas industry, Sabah was only now beginning to catch up.
“We are just starting out — we’re crawling while they are already running,” he said.
Despite Shafie’s call for firmer policies to secure Sabah’s natural resources, Masidi said the State Government believes in quiet but consistent action.
“We work quietly - and we see results. Others may talk, but have no outcomes,” he said.
Earlier, Daily Express reported that Dialog Group Berhad, a Peninsular Malaysia-based company listed on Bursa Malaysia, was awarded a 14-year production-sharing contract by Petronas on June 13 for the Mutiara Cluster Small Field Asset through its wholly owned unit, Dialog Resources Sdn Bhd.
The cluster comprises five marginal fields — Nymphe, Nymphe North, Kuda Terbang, Benrinnes and Mutiara Hitam — located in the Sandakan Basin. It marks the first time commercially viable oil and gas reserves have been confirmed off Sabah’s east coast in the Sulu Sea, with first gas targeted before the first quarter of 2029.
To accelerate the project, Dialog also signed a one-year, non-binding memorandum of understanding (MOU) with Petronas to explore cost reductions and fast-track production. The two parties will share technical data and collaborate on field development and abandonment plans.
Founded in 1984 and led by Tan Sri Dr Ngau Boon Keat, Dialog has grown through partnerships with global technology providers. It is a constituent of the FTSE4Good Bursa Malaysia and FBM Mid 70 Index, with a market capitalisation of RM9.3 billion.
