More Sabahan companies are breaking into high-value segments of the oil and gas supply chain, with vendor success stories growing nearly 800% since 2022.
“There’s (so) many of them,” SMJ Energy Sdn Bhd executive director Terry Biusing told FMT, referring to the surge of Sabahan firms now holding oil and gas contracts across upstream, midstream and downstream services.
He said that in 2022, only 10 local companies were honoured for upgrading their technical capabilities and securing major technical and high-value contracts.
“Two years ago, in 2023, that number went up to about 25. Early this year, it went up to 88. These companies have evolved from doing minor maintenance to major, complex maintenance,” he added.
According to Terry, head of SMJ Energy’s OGSE and corporate division, several local players have successfully entered once-inaccessible niches, such as well services and subsurface operations.
“(As) for the major hook-up and commissioning services, and offshore maintenance, construction and modification contracts, no Sabahan had held these since day one,” he said.
“But last year, all the contracts in Sabah were actually dominated by Sabahan companies, some of them through partnerships.”
Around 169 companies are currently active in Sabah’s oil and gas sector, with many holding at least a couple of contracts.
Terry added that more vendors are also being recognised for offering new services such as third-party logistics and accommodation vessel services, showing local diversification in the broader value chain.
Youth opportunities abound
The state’s growing technical foothold comes as national oil company Petronas announced plans to invest RM2 billion over the next four to five years on exploration and project development in Sabah including deepwater fields, enhanced oil recovery projects and gas developments.
“That gives you the perspective that there’s more to come,” said Terry, adding that Sabah’s reserves may possibly “last for decades”.
He emphasised that youth in Sabah have a critical opportunity to participate in this future in line with industry demand.
“As far as the youth is concerned, the opportunity is there,” he said, commenting on how in-state employment can both boost local economic growth and keep communities together.
“What’s more important right now — for us in SMJ Energy and also the Sabah state government — is to make sure we have a handle on what kind of market demand there is.
“(Also) what kind of skilled labour is needed to support the whole ecosystem of oil and gas in Sabah.”
He added that the Sabah local content council had recently established a new joint task force to formulate a comprehensive action plan and secure the necessary funding to efficiently and sustainably cultivate a competent workforce of Sabahans for OGSE services within the state.
The overarching objective is to create a strategic and sustainable talent pipeline that enables Sabahans to contribute meaningfully, not only in support roles but also in the most technically demanding segments of the industry.
For youth interested in breaking into the sector, Terry advised that “all skill sets are required” and welcome. The oil and gas sector involves various occupations, such as accountants, engineers, and technicians, he added.
Terry said that while there are certain requirements and competencies specific to the industry, companies in Sabah have training programmes to help new hires rise to the necessary level.
