Sabah has launched an RM8.88 billion (USD2 billion) Oil and Gas, Energy Hub Project at the Sipitang Oil and Gas Industrial Park (SOGIP), aiming to boost economic growth and create jobs.
Chief Minister Datuk Seri Hajiji Noor, officiating the launch at the Sabah International Convention Centre today, said the project would drive the state’s energy sector forward.
“SOGIP will serve as a catalyst for further growth in the energy sector, which is crucial for Sabah’s sustained economic growth,” he said.
The project, developed by Sabah Oil and Gas Development Corporation (SOGDC) and UK-based Gibson Shipbrokers Limited, will be completed in two phases, featuring a port for energy-related activities.
Hajiji said sustainability is a key focus, with plans to integrate liquefied natural gas (LNG) and cleaner energy sources.
“As Malaysia moves toward reducing its carbon footprint, the integration of cleaner energy sources, such as LNG, plays a crucial role in the country’s energy transition strategy,” he said.
The initiative is expected to generate local employment, with 80% of the workforce to be sourced from Sabah.
“In this regard, I have always stressed the importance of prioritising the employment of Sabahans in all projects and operations within the state,” he said.
He also highlighted the role of the Sabah Local Content Council, set up under SMJ Energy last year, in ensuring industry stakeholders invest in training and development.
“Through this platform, the State Government will mandate all stakeholders to invest in the training and development of Sabahans through short-term and medium-term programs to be executed in 2025,” he said.
Hajiji expressed confidence that continued collaboration would further strengthen Sabah’s oil and gas sector.
“I wish to reaffirm the State Government’s commitment to progress and develop Sabah’s oil and gas industry,” he said.
The launch underscores Sabah’s push for greater participation in the energy sector, aligning with broader national energy transition goals. – February 11, 2025
