Caretaker chief minister Hajiji Noor has attributed Sabah’s successes in the oil and gas sector to efforts in engaging Petronas over confronting the national petroleum company.
KOTA KINABALU: The gains Sabah has made in the oil and gas sector, including equity in several major Petronas projects, have been realised through dialogue over confrontation, caretaker chief minister Hajiji Noor said.
He recalled a meeting he had with Petronas chairman Bakke Salleh in Kuala Lumpur at the height of the Covid-19 pandemic to present a proposal that would later turn out to be a game changer.
Hajiji said he explained to Bakke and CEO Tengku Muhammad Taufik Aziz what Sabah wanted from the national oil company, something he claimed had not been done by previous state administrations.
“Bakke and Tengku Taufik told me they finally understood Sabah’s claims and the state government’s direction,” he told FMT in an exclusive interview.
“This is how I do things. I personally told Petronas what Sabah wanted (from the oil company) and the chairman responded by saying ‘chief minister, I now know what Sabah wants’.”
“Previously it was not clear to them as they were not presented with any concrete plans,” he added.
A few months after Hajiji’s meeting with the Petronas leadership, Sabah gained a 50% stake in the Samarang oil field, 25% in Samur, and recently, another 25% in the floating liquefied natural gas (ZLNG) facility in Sipitang.
Over and above that, Sabah signed a commercial collaboration agreement with Petronas that enabled the state to have “greater say, greater participation and greater revenue sharing” in its local oil and gas industry.
Oil and gas contracts surged to 250% in the span of four years, which industry players hailed as a significant achievement and a first for the state.
More Sabah companies are now breaking into high-value segments in the oil and gas supply chain, with vendor success stories growing nearly 800% since 2022.
Vendors based in Sabah now command a 36% share of the contract market in the state’s oil and gas sector.
Hajiji said the benefits from its deal with Petronas has trickled down to the people and more importantly the agreement was reached without adopting an antagonistic approach in dealing with the federal government or Petronas.
“There’s no need to quarrel. We discussed it in a cordial manner and now we are reaping the benefits,” he said, adding that Sabahans could expect more good news in future.
“God willing, next year we will see more successes.”
Hajiji went on to say that Sabahans should look at the results rather than listen to allegations or vague proposals.
He said Sabah is now in a better position in terms of the benefits it has derived from its oil and gas resources.
He attributed it to its better ties with Petronas.
