Kota Kinabalu: The Sabah Oil and Gas Industrial Park (Sogip) in Sipitang is now nearly fully occupied with investors, including major player Esteel Sabah Sdn Bhd (Esteel), which is investing up to RM31 billion in the State’s oil and gas downstream sector.
Former Sabah Oil and Gas Development Corporation (SOGDC) Chief Executive Officer Datuk Harun Ismail said early works for the Esteel project have begun, with the first phase valued at around RM7 billion.
“We have already signed agreements for all three project phases, and initial works such as site clearing are underway.
“This positive development underscores Sogip’s crucial role as a key driver of Sabah’s economic growth, particularly in the strategic oil and gas sector.
“Several other investors are also in talks with SOGDC to further expand industrial activities within the park,” he said when met by reporters after a courtesy visit to the Head of State, Tun Musa Aman, on Tuesday.
The visit was held to mark Harun’s retirement after nearly 40 years in the energy sector, and to announce the appointment of Mohd Azmir Ramli as SOGDC’s new CEO effective Sept 16, this year.
Harun also noted that the recognition of Sipitang as a full Port Limit area gives Sogip a major logistical advantage, making it more competitive than other industrial zones nationwide.
“In most areas, the port limit only covers the harbour boundary, but in Sipitang, it extends from border to border out to sea. This is the first such approval in Sabah,” he said.
Commenting on the 2026 Budget, Harun said the increased federal development allocation of RM6.9 billion for Sabah reflects positive progress.
He said the additional funds would further strengthen the state’s capacity to provide public infrastructure and facilities while reinforcing support for the existing government.
