PETRONAS and Sabah Government Celebrate Local Vendors Driving Oil and Gas Growth

KOTA KINABALU, 23 January 2025 – PETRONAS and the Sabah Government today celebrated the achievements of Sabah local players in the oil and gas services and equipment (OGSE) industry in fostering the sector’s sustainable growth in the state.

During the ceremony, PETRONAS Vice President of Group Procurement Rashidah Alias honoured 88 local Sabah vendors, a notable increase from 25 vendors in 2023 and 10 vendors during the event’s inception in 2022.

State Minister of Finance Datuk Seri Panglima Masidi Manjun who represented Chief Minister, Datuk Seri Panglima Haji Hajiji Haji Noor, witnessed the event along with Senior Vice President of Malaysia Petroleum Management, Datuk Ir. Bacho Pilong.

The event also saw award of contracts by PETRONAS to four Sabah vendors to provide Integrated Well Continuity Services in critical areas such as well interventions, well abandonment and workover, as well as subsea intervention.

Additionally, PETRONAS recently awarded three contracts under the Pan-Malaysia Offshore Maintenance, Construction & Modification (MCM) and Hook-Up & Commissioning (HUC) to four Sabah vendors. These awards are part of a strategic partnership and joint venture initiative to build capability and capacity of Sabah vendors.

Three additional vendors were also recognised under the state's new frontier opportunities and sectors, with contracts covering third-party logistics and accommodation vessel services, highlighting the shared commitment of both parties in enhancing opportunities for Sabah vendors.

Datuk Ir. Bacho Pilong said: “This event reflects PETRONAS’ strong commitment and on-going collaboration in support of Sabah’s development aspirations. Over the years, PETRONAS and Sabah have cultivated a strong partnership founded on mutual growth, resource management and advancing the state’s energy sector.”

“PETRONAS is immensely proud of the resilience and competitiveness of our Sabahan vendors in the OGSE landscape.”

PETRONAS also welcomed Hunai Jaya Sdn Bhd as the latest industry player to join the PETRONAS Vendor Development Programme (VDP), an initiative which has supported Bumiputera vendors since 1993. The programme continues to strengthen the local industry with 20 Sabah vendors appointed since inception.

PETRONAS has also strengthened the Sabah OGSE ecosystem through initiatives such as the Vendor Financing Programme (VFP), in which since 2018 and in partnership with nine financial institutions, has facilitated access to over RM120 million in financing for 17 Sabah companies.

The commitment extends beyond OGSE ecosystem as PETRONAS continues to pursue ongoing efforts and provide opportunities to create a sustainable ecosystem that addresses industry needs and fosters local vendor growth. Through our strategic focus on education and human capital development in Sabah, PETRONAS has invested over RM425 million since 2010, benefiting more than 1.3 million beneficiaries.

On the upstream front, PETRONAS through Malaysia Petroleum Management (MPM) has awarded 18 Production Sharing Contracts (PSCs) under the Malaysia Bid Round (MBR) and Malaysia Bid Round Plus (MBR+) whereby five of these PSCs successfully signed for Sabah.

This development enables petroleum arrangement contractors to expand their portfolios in Malaysia, while OGSE players with strong track records continue to drive growth in the country's petroleum sector.