Nation

Sabah Local Content Council to boost local firm participation in OGSE sector

KOTA KINABALU: The government has launched the Sabah Local Content Council to boost the local participation within its oil and gas services and equipment (OGSE) sector.

The collaborative effort between the state government, Petronas and local industry players aims to address existing challenges and achieve ambitious local content targets.

State Finance Minister Datuk Seri Masidi Manjun said the crucial role collaboration would play a role in achieving those targets.

"Immediate and collective action from all stakeholders within the industry is important," said Masidi, who is also SMJ Energy Sdn Bhd chairman.

Between 2022 and last year, state companies saw a remarkable 40 per cent increase in revenue generated from OGSE-related jobs.

The trend continued last year, with a total of RM1.5 billion worth of OGSE work awarded to local companies, showcasing their expanding capabilities and growing presence in the industry.

"Building on this momentum for 2024, Sabah and Petronas have jointly agreed with a target to award 30 per cent of all OGSE spending within Sabah to qualified Sabahan companies.

"This year, it aims to achieve an 80 per cent Sabahan employment rate within the OGSE industry for the year."

The council's mission was multifaceted, focusing on enhancing collaboration among industry players to streamline processes and identify opportunities.

It would also advocate for fair tender practices to create a level playing field for qualified Sabahan companies to compete for OGSE contracts.

"It will also be providing skills development programmes to empower Sabahan companies and their workforce, ensuring they have the necessary expertise to thrive in the OGSE sector.

""The council will also be promoting transparency and accountability within OGSE tender processes in Sabah, building trust and confidence among all stakeholders."

The council is chaired by SMJ Energy OGSE and corporate executive director Terry Biusing.

The membership encompasses representatives from key government bodies, Petronas and its group of companies operating in Sabah, prominent oil and gas companies like PTTEP Sabah, Hibiscus Petroleum Bhd, Shell and Kebabangan Petroleum Operating Company, as well as local OGSE associations, such as the Sabah Oil and Gas Services Council and Persatuan Kontraktor Petroleum Bumiputera Sabah.

"This diverse membership ensures a well-rounded perspective and expertise to guide the council's efforts.

"With the launch of the Sabah Local Content Council and the establishment of the 2024 targets, Sabah is well-positioned for a significant boost in local participation within its OGSE industry.

"This initiative holds the potential to benefit both Sabahan companies and employees, fostering a more robust and sustainable OGSE sector in the years to come."

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