Kota Kinabalu: Sabah produces 41 per cent (197 kboed) of petroleum oil and condensate and 18 per cent (173 kboed) of natural gas in Malaysia which earned RM3.44 billion for Sabah in oil and gas royalties and state sales tax in 2023.
SMJ Energy Vice President for Government Affairs and Projects, Allen Chia, revealed there are 465 planned tenders to be issued until 2026.
AdvertisementThe Sabah government aims to increase use of competent and capable Sabah and build smart partnerships with non-Sabah companies to facilitate mentorship programmes and explore incentive opportunities.
Chia stressed that SMJ Energy Sdn Bhd would not entertain any Sabah firm involved in an “Ali Baba” set up for getting a share of Sabah’s tender quota in the sector.
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There is an ongoing capability assessment of these Sabah companies to identify meaningful capabilities to be developed as well as to mitigate capacity or capability gaps, and any sleeping Sabahan partner firms will be noticed with skills gap analysis.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});There is a need to increase Sabah employment in the sector in a structured and sustained manner. There was a 67 per cent increase in work categories prioritised for Sabah companies.
Capability development includes awarding scholarships, internship programmes, customised training programmes and work permit enforcement.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});“There is greater revenue sharing and greater participation of Sabah contractors since the signing of CCA with Petronas,” Chia said, stressing that SMJ Energy will not compromise on safety, quality, competitive schedule and costs.
“There is a drive to increase Sabah contract awards by value in a meaningful, significant and systematic manner without compromising technical requirements, safety, project costs and schedule with 80 per cent OGSE positions to be Sabahans.”
The focus to make the Sabah Vendor Development Programme a success with the sub-contracting target for capable Sabahan companies to be realised by non-Sabahan mentor companies as partnership with Sabahan companies is mandatory requirement for any non-Sabahan companies wishing to participate in any oil and gas industry tenders in Sabah.
Chia presented a “Sabah OGSE Industry Update” report at the Sabah Oil & Gas Onboarding Workshop 2024 at ITCC Ballroom Hall 2 on Thursday, Dec 12, 2024.
He recalled that the total OGSE industry spending in Sabah amounted to RM11.9 billion in 2024 compared to RM7 billion spent in 2023. Some 82 per cent of the planned tenders were prioritized for Sabahan companies.
