Kota Kinabalu: Sabah Economic Development Corporation (Sedco) expects to increase its returns to the State Government to RM25 million this year after finalising land lease agreements with Petronas for two key energy facilities.
The projected return, comprising dividends, loan repayments and direct contributions, is up from RM10 million in 2025, supported by the national oil company settling outstanding lease payments.
Sedco chairman Datuk Masiung Banah (pic) said the agreements cover 32.5 hectares for Sabah Oil and Gas Terminal (SOGT) operations in Kimanis and a 260-hectare corridor spanning 91km for the Sabah-Sarawak Gas Pipeline (SSGP) linking Kimanis to Sipitang.
Valued at more than RM200 million over 30 years, the deal formalises land tenure for the strategic infrastructure and reinforces Sedco’s recurring revenue base.
Masiung noted that the strengthened financial standing will bolster Sedco's reinvestment into State economic projects, including the Kudat Blue Economy Industrial Park, as well as entrepreneur funding programmes such as S-Seed and Rise.
