by David E.
KOTA KINABALU: Oct 14, 2026 – The Sabah government wants the development of the oil and gas industry to be based not only on the exploration and production of resources, but also on creating greater economic value for the state and the people, said Chief Minister Datuk Seri Panglima Hajiji Noor.
He said the important question is not how much resources Sabah has, but how much value can be created from those resources.
He said the oil and gas industry spans the entire value chain, from infrastructure and support services to midstream and downstream activities, vendor development, technology, skilled workforce and investment.
“Of course, we want the development of this industry to create wider economic spillover effects,” he said at the signing ceremony of the Land Lease Agreement for the SOGT and SSGP Projects between SEDCO and PETRONAS at Hyatt Regency Kinabalu here today. His speech was delivered by Deputy Chief Minister III Datuk Ewon Benedick.
Hajiji said developments in exploration and the discovery of new resources point to greater prospects for Sabah.
The SOGT and SSGP infrastructure should be seen as part of the key infrastructure supporting the state’s economic growth ecosystem, particularly the Kimanis-Sipitang corridor, which has the potential to become a key growth area.
The state government wants greater local participation, enabling Sabah companies and vendors to move from support work to building technical, management, technological and capital capacity.
Local companies need the capacity to participate in larger and higher-value opportunities, while PETRONAS has an important role to play alongside the state government in realising this aspiration.
Hajiji stressed that SEDCO needs to evolve from an asset owner and manager into an investment facilitator and strategic industry partner.
He said the SEDCO-PETRONAS land lease agreement is an example of more orderly management of state land assets, providing certainty and safeguarding the state’s commercial interests.
He hoped SEDCO-PETRONAS cooperation would grow from a transactional relationship into a broader, mutually value-adding strategic relationship, ensuring the management of state resources and assets is translated into real and lasting economic value.
– TV Sabah
