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Daily Express
2 days ago
- Business
- Daily Express
Safeguard against fake participation in oil and gas: Non-Sabahan companies using drivers, cleaners as equity holders
Published on: Monday, July 14, 2025 Published on: Mon, Jul 14, 2025 Text Size: Masidi pointed out the need for strong safeguard against fake participation saying: 'The reason why local partners must hold at least 30 per cent is because we do not want non-Sabahan companies using their drivers or general cleaners as a 10 per cent or 15 per cent equity holder. I know many do this. That is over now. We need serious, genuine local participation.' Kota Kinabalu: Dayak Chamber of Commerce and Industry (DCCI) President Datuk Allan Keripin Nangkai said Sarawak's century-long experience in oil and gas will be useful when partnering with Sabah companies. 'We have been in oil and gas for more than 100 years. Some of our companies are well established. We want to team up with Sabahan companies to share our experience and help them grow,' he said during the forum's question and answer session. He said this at the recent Kadazandusun Chamber of Commerce and Industry (KCCI) – Dayak Chamber of Commerce and Industry (DCCI) Oil and Gas Business Opportunities Forum at the ITCC Grand Ballroom. When asked about using Sarawak's Petros licenses in Sabah, SMJ Energy Sdn Bhd's Oil and Gas Services and Equipment (OGSE) and Corporate Executive Director Terry Biusing pointed out partnership while maintaining Sabah's streamlined approach. 'My advice is to work with Sabahan companies. Get them to apply for the license,' he said. He said Sabah deliberately chose not to create duplicate licensing systems, instead focusing on monitoring and transparency through existing Petronas frameworks. 'We do not want to create another unnecessary level of control. We want to work with Petronas,' Terry said, pointing out SMJ Energy's efficient, results-focused approach that delivers through policy changes rather than adding more bureaucracy. Meanwhile, Sabah Finance Minister Datuk Seri Masidi Manjun pointed out the need for strong safeguard against fake participation saying: 'The reason why local partners must hold at least 30 per cent is because we do not want non-Sabahan companies using their drivers or general cleaners as a 10 per cent or 15 per cent equity holder. I know many do this. That is over now. We need serious, genuine local participation.' The transformation of Sabah's oil and gas services sector reflects more than just economic success, it shows how smart government action, combined with industry collaboration and transparent processes, can create opportunities while maintaining the highest standards. Through SMJ Energy's leadership and the State Government's vision, Sabah has created a monitoring system that tracks not only revenue and contracts but also company capabilities across different work areas. The organisation keeps detailed profiles of the top 10 Sabahan companies in each major work category and monitors services being exported by local companies, showing their growing competitiveness beyond State borders. Regular performance reviews, compliance checking, tender reviews and pre-tender briefings ensure continuous improvement and fair processes. Terry said the establishment of the Sabah Local Content Council and Joint Task Force for Mandatory Partnerships provides ongoing governance and support for the sector's development. 'This systematic approach has created a model that can be copied by other regions, one that prioritises local empowerment, maintains international standards and delivers measurable results,' Terry said. As the sector continues to grow, with companies now exporting services beyond Sabah, the State is well-positioned to become not just Malaysia's energy hub, but a regional centre of excellence for oil and gas services. 'The opportunity is huge. We spend about RM7 billion annually on oil and gas in Sabah. That opportunity is there for Sabah,' he said. With continued focus on building capabilities, strategic partnerships and maintaining world-class standards, Sabah's oil and gas transformation stands as proof of what can be achieved when government vision meets industry expertise and local determination. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
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Daily Express
4 days ago
- Business
- Daily Express
Towards stable, sustainable oil and gas sector
Published on: Saturday, July 12, 2025 Published on: Sat, Jul 12, 2025 By: Sherell Jeffrey Text Size: Terry said in December 2021, the State Government inked the Commercial Collaboration Agreement (CCA) with Petronas which opened doors for Sabah companies to get a bigger slice of the pie in an industry that produces 40 per cent of Malaysia's oil and 20 per cent of its gas,'. PENAMPANG: The State Government has a dream to create a stable, sustainable oil and gas industry where Sabah companies can really participate, said SMJ Energy Sdn Bhd's Oil and Gas Services and Equipment (OGSE) and Corporate Executive Director Terry Biusing. He said this at the recent Kadazandusun Chamber of Commerce and Industry (KCCI) – Dayak Chamber of Commerce and Industry (DCCI) Oil and Gas Business Opportunities Forum at the ITCC Grand Ballroom, recently. Terry said in December 2021, the State Government inked the Commercial Collaboration Agreement (CCA) with Petronas which opened doors for Sabah companies to get a bigger slice of the pie in an industry that produces 40 per cent of Malaysia's oil and 20 per cent of its gas,'. The numbers speak for themselves. Since the agreement kicked in, Sabahan companies have seen their earnings shoot up by 300 per cent from 2021 to 2024. More recently, comparing May 2024 to May 2025, there was a 96 per cent jump in contracts awarded to Sabah companies, reaching RM603 million more than what they earned in the entire year of 2021. 'In just the first five months of 2025 compared to the same period in 2024, we have nearly doubled the revenue awarded to Sabahan companies,' Terry said, citing how the effort keeps getting better. The industry has also grown in size. The number of oil and gas service companies jumped 51 per cent from 263 to 396, while active companies nearly doubled from 79 to 151. This is not just about numbers, it means real jobs and real opportunities for Sabahans. How did they pull this off? Through smart policy changes made by a special committee led by local leaders. Their job was to increase Sabahan participation without compromising on safety, quality or costs. The key changes included raising the tender threshold to RM20 million for upstream work and RM10 million for downstream work. They also expanded the types of work reserved for Sabahan companies from 63 categories to 135, more than doubling the opportunities. 'What does prioritised mean for Sabah tenders? It means if there are more than three capable Sabahan companies bidding, it becomes a closed tender for Sabahan companies only,' Terry said. He said non-Sabahan companies must partner with local firms, with Sabahan companies required to hold at least 30 per cent ownership or do 30 per cent of the work. Perhaps the biggest game-changer was introducing the Kinabalu Activity Outlook (KAO), which brought transparency to an industry that was previously like a guessing game. 'In the past, companies applying for Petronas licenses were like buying lottery tickets. You never knew which numbers would come up or which licenses would be used. That is where the KAO comes in,' he said. Terry said the KAO gives companies a three-year forecast of opportunities across different sectors, covering all major operators including Petronas, Shell, Hibiscus and ConocoPhillips, among others. 'The current outlook shows 90 per cent of tenders are prioritised for Sabahan companies, with clear categories, namely 23 per cent have low entry barriers, 45 per cent need medium investment and 31 per cent require high investment or special technology,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
29-06-2025
- Business
- Daily Express
RM2 billion jobs for Sabah Oil and Gas firms
Published on: Sunday, June 29, 2025 Published on: Sun, Jun 29, 2025 By: Sherell Jeffrey Text Size: Masidi noted that Petronas has also agreed to take in Sabahans as interns, giving them valuable experience in oil and gas operations. PENAMPANG: Sabah oil and gas companies secured RM2 billion worth of work contracts in 2024, a three-fold increase that reflects growing confidence in local capabilities. This means more jobs and money in the industry now stay in Sabah, instead of benefitting outside companies. 'We scored RM2 billion last year and we hope that it is going to be more this year,' State Finance Minister Datuk Seri Masidi Manjun said in his keynote at the Oil and Gas Business Opportunities Forum held at the ITCC Grand Ballroom, Saturday. He also said those who compare Sabah's progress in the industry with Sarawak must bear in mind that the latter has 115 years more experience. 'Sabah and Sarawak are not an apples-to-apples comparison. Oil was discovered in Miri in 1910, so Sarawak is 115 years ahead of us. But we are running faster to catch up with Sarawak.' 'When our mind is focused on what needs to be done, things can get done quite well,' he said, adding credit is owed to the Commercial Collaboration Agreement (CCA), signed with national oil company Petronas in December 2021. The turnaround began when Sabah created its own oil and gas company, SMJ Energy, three years ago. Starting with just RM50 million from the State Government and 11 workers, the company now employs 30 people and made RM362 million profit last year. 'We started very, very skeletal. But within three years the company is now worth RM5 billion in assets,' said Masidi, who is also SMJ Energy Chairman. The key was keeping costs low while focusing on making money. Instead of hiring lots of expensive managers, SMJ Energy outsources specific jobs and only pays when work is completed. A big reason for the success is the Sabah Local Content Council, led by SMJ Energy's OGSE and Corporate Executive Director Terry Biusing. This group makes sure more contracts go to Sabah-based companies. 'We have a local content council chaired by Terry and for the last one year there has been a notable increase in the volume of contracts secured by local companies.' He acknowledged that local companies sometimes lack the technical skills for complex jobs. The State encourages them to partner with experienced international firms whereby the foreign company provides expertise while locals do the hands-on work and learn new skills. Masidi noted that Petronas has also agreed to take in Sabahans as interns, giving them valuable experience in oil and gas operations. The Business Opportunities and Challenges in Sabah's Oil and Gas Industry Forum: The Way Forward was hosted by the Kadazandusun Chamber of Commerce and Industry (KCCI) and Dayak Chamber of Commerce and Industry (DCCI) in conjunction with the Kaamatan Gawai celebration. The forum brought together business people from Sabah and Sarawak to share ideas and explore partnerships. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
