KUALA LUMPUR: Sabah has secured greater involvement in the oil and gas industry through state-owned firms like SMJ Energy Sdn Bhd under the Commercial Collaboration Agreement (CCA).
Minister Datuk Azalina Othman Said confirmed the strengthened partnership between Petronas and the Sabah government following the CCA signing on Dec 7, 2021.
As of Q1 2025, 326 Sabah-based firms have been licensed as Petronas vendors, marking a significant rise in local participation.
Azalina noted that contract values awarded to Sabah companies surged from RM613 million to RM2 billion by 2024, a 3.3-fold increase.
She addressed queries from Datuk Seri Jeffrey Kitingan regarding Sabah’s oil and gas rights and revenue-sharing agreements.
Petronas remains dedicated to enhancing Sabah’s role in the sector through feasible and sustainable commercial terms.
The progress aligns with the CCA framework, ensuring broader economic benefits for Sabah in the national oil and gas industry. – Bernama