Kota Kinabalu: Sabahan companies have secured billions of ringgit worth of major oil and gas contracts in recent years, with local vendors now delivering complex offshore services, marine operations and subsurface work that were once dominated by larger external players.
“These awards are not ordinary milestones. They represent Sabah’s movement into higher-value, technically demanding and asset-intensive segments of the industry,” said State Industry Development, Entrepreneurship and Transport Ministry Permanent Secretary Datuk Thomas Logijin during his talk, “Sabah OGSE Local Content Policy and Performance”.
Thomas was among the invited speakers at the Oil and Gas Services and Equipment (OGSE) Conference and Exhibition Sabah 2026, held at the Sabah International Convention Centre here, recently.
Among the most significant awards are those in maintenance, construction, modification, hook-up and commissioning (MCMHUC), a segment Thomas described as the crown jewel of heavy offshore services.
“Sabahan companies secured long-term contracts in this category valued at about RM2.7 billion.
“This shows that Sabahan companies are now trusted to deliver complex, large-scale offshore services packages,” he said.
He said Sabahan vendors have also secured contracts worth about RM153 million involving production vessels and marine assets.
In subsurface and well-related services under the Integrated Well Continuity Services category, Thomas said Sabahan companies are beginning to break into a technically demanding frontier traditionally dominated by larger, established players.
Thomas also highlighted strong performances by individual local companies in high-value segments.
“These contracts reflect a shift in Sabah’s participation across the oil and gas value chain, with companies involved in marine vessels, logistics, drilling, production, mechanical and piping works, safety, instrumentation, civil works, inspection, maintenance and information technology now commanding more than 70 per cent of the market share within the State.
“Sabahan companies are developing real capabilities, building operational credibility and strengthening their position as reliable partners. In many cases, they have become the preferred choice for industry delivery,” he said.
Thomas said the achievements should serve as a launchpad rather than a finishing line.
“We have proven that Sabah can lead in this space. The task now is to use this momentum as a launchpad to conquer the remaining frontiers ahead of us,” he said.
Despite the success, he noted weak tender responses, substandard technical submissions and inflated pricing among some local vendors, warning that such practices could undermine the state’s goal of achieving 60 per cent Sabahan contract ownership by the end of 2026.
“The State Government and Petronas have done their part in opening doors for local companies, and vendors must now match that effort with professionalism and discipline.
“Policy can open doors, but it is you, the vendors, who must walk through them,” he said.