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Daily Express
11-07-2025
- Business
- Daily Express
Sabah's energy shift must be inclusive: Sabah Energy Corporation
Published on: Friday, July 11, 2025 Published on: Fri, Jul 11, 2025 By: Crystal E Hermenegildus Text Size: Annuar said SEC's strategy goes beyond corporate social responsibility-it is about embedding ESG values into every layer of decision-making. Kota Kinabalu: A just energy transition must ensure that the shift toward cleaner energy does not leave communities behind, said Sabah Energy Corporation (SEC) Chairman Datuk Annuar Ayub. He said that while the world is undergoing a major energy transformation, progress must be inclusive — one that protects livelihoods, enhances quality of life, and empowers communities across Sabah. 'We all agree that the world is transitioning. But a just energy transition must ensure that, as we shift towards cleaner energy, it does not leave communities behind,' Annuar said. He said this in his keynote address at the recent 12th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE), held at the Sabah International Convention Centre (SICC). As the largest natural gas supplier in Sabah, and one of the largest in Malaysia, SEC plays a pivotal role in driving this transformation. According to Annuar, the Corporation powers 86 percent of Sabah's electricity, supports over 45 industrial customers, and serves more than 500,000 households. Yet, he said SEC's impact extends beyond statistics — to powering the potential of youth, rural towns, and rising cities. Annuar stressed that natural gas remains a crucial transitional fuel in ensuring a stable and cleaner alternative to coal and diesel. It is especially vital in maintaining essential services such as hospitals, schools, and homes. He cited Esteel's green steel complex- an anchor project enabled by natural gas- as an example of how energy resources can catalyze large-scale industrial development and job creation. 'But we must be honest: this bridge cannot be long. It must lead us forward,' he said, adding that SEC is aggressively reinvesting gas-derived value into renewable energy. Annuar outlined several renewable projects currently spearheaded by SEC: A 15MW solar project in Tuaran is in advanced stages, A RM4billion hydroelectric project in Ulu Padas, Tenom, expected to contribute 15 percent to Sabah's grid capacity, integrates biodiversity offset plans such as floating solar and nature-positive engineering. Moreover, a 100MW utility-scale wind power project in Kudat is nearing the end of a detailed feasibility study. Once operational, it would mark Malaysia's first wind energy source, significantly reducing fossil fuel reliance. SEC is also the lead proponent of the wind energy initiative and is working closely with technical partners to ensure that development aligns with the interests of local communities. 'We prioritise respectful engagement and work collaboratively with village is not mere compliance. This is commitment,' Annuar said. These initiatives align with the SE-RAMP 2040 goal of having 35 per cent of Sabah's energy from renewable sources by 2035. Annuar said SEC's strategy goes beyond corporate social responsibility-it is about embedding ESG values into every layer of decision-making. The corporation has built partnerships with major entites including Petronas, Maybank, Cimb, Ambank, and Sabah Development Bank, as well as NGOs and civil society. On the ground, SEC is actively empowering Sabahans through the Skill Enchancement and Career Advancement (SECA) programme. The initiative targets underprivileged youth from B40 backgrounds, providing them with real work experience and allowances, with many securing employment post-training. 'Energy must empower. Otherwise, it is incomplete,' he said. SEC also supports local schools, clinics, and disaster preparedness efforts, reinforcing its commitment to equitable development. Reinforcing its commitment to sustainability, SEC holds a 30 percent stake in the Tabin Wildlife Reserve initiative. This partnership supports rewilding efforts and the conservation of ecological corridors. 'We believe that energy development and ecological preservation can and must coexist,' he said. Annuar said Sabah's energy transition must not mirror Western Models, but instead be localized, just,and inclusive to ensure every village and community shared its benefits. 'At SEC, we believe we are not just powering homes. We are powering heart and hope. 'The future is not something we wait for. It is something we engineer with care, courage and collective purpose,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
04-07-2025
- Business
- The Star
Sabah aims for 100% local oil and gas roles
KOTA KINABALU: A 100% increase in oil and gas services and equipment (OGSE) contracts has been set aside for Sabahan companies this year, says Datuk Seri Hajiji Noor. The Sabah Chief Minister said the target set by the state government in collaboration with PETRONAS and industry partners has one clear objective, which is to have 100% of non-technical roles and at least 80% of technical roles in the OGSE sector to be filled by Sabahans. 'These targets reflect our firm commitment to strengthening local participation and building a resilient, homegrown energy ecosystem,' he said at the 12th Sabah Oil, Gas and Energy Conference and Exhibition at the Sabah International Convention Centre here yesterday. State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe delivered Hajiji's speech. He said in 2021, the total contracts awarded to Sabahan companies for local oil and gas services jobs stood at RM341mil, but by the end of last year, the figure soared to over RM2bil for jobs awarded both in and outside Sabah. He said Sabah's oil and gas industry is an essential pillar of the state's economic growth, and continues to play a pivotal role for Malaysia, contributing nearly 40% of the country's oil production and about 20% of its gas output. Hajiji, however, believes that Sabah's role must extend beyond mere production. 'We aspire for Sabah to become a centre of excellence for OGSE innovation and sustainable energy practices and a hub where investment, talent and technology converge to create long-term value,' he said. Hajiji also said the state government, through SMJ Energy, has taken decisive steps in securing equity in key upstream and downstream assets, including the Samarang PSC and the Samur petrochemical plant, as well as interests in exploration blocks SB403, SB409, SB306A and SB306B. He said Sabah Energy Corporation has also strengthened its position as Malaysia's largest domestic supplier and transporter of natural gas, following its successful takeover of PETRONAS' onshore gas contracts here. 'I wish to take this opportunity to thank PETRONAS and all our operating partners in Sabah for your continuous efforts, commitment and investment in local content development,' he said.
Daily Express
03-07-2025
- Business
- Daily Express
RM500 million yearly next five years. On exploration and related activities in Sabah's East Coast: Petronas
Published on: Friday, July 04, 2025 Published on: Fri, Jul 04, 2025 By: Sisca Humphrey Text Size: 'One major target is Block SB505 off the east coast, with 3D seismic data being made freely available to qualified bidders. Our goal is simple. We want to lower the risk and raise the value of these underexplored basins,' Bacho said. Kota Kinabalu: Petronas is accelerating its upstream agenda in Sabah with a renewed push into the state's frontier basins, strategic deepwater projects and industrial-scale gas monetisation, including the rebranding of the Semporna Basin to the Tawau Basin. Petronas Senior Vice President of Malaysia Petroleum Management (MPM), Datuk Bacho Pilong, said Sabah continues to be a cornerstone in the national oil company's long-term energy strategy. Advertisement 'Sabah is central to the country's energy future. From west coast producers to east coast frontier opportunities, it offers a complete portfolio for sustainable growth,' he said. He was delivering a keynote address at the 12th Sabah Oil, Gas & Energy Conference & Exhibition (SOGCE) 2025 at Sabah International Convention Center (SICC), Thursday. One of the most notable announcements was the proposed renaming of the Semporna Basin to the Tawau Basin, aimed at reflecting growing interest in Sabah's southeastern offshore potential. A name change intended to better reflect the geographical context and rising commercial interest in Sabah's southeastern offshore areas. 'We believe the time is right to rebrand the basin. Tawau reflects both its geography and its immense untapped potential. This is not merely a naming change. 'It signals a long-term repositioning of exploration focus and commercial attention,' he said. Further supporting this shift, Petronas will commit RM500 million annually until 2030 toward exploration and basin enrichment, including seismic acquisition, geological mapping and open data access. 'One major target is Block SB505 off the east coast, with 3D seismic data being made freely available to qualified bidders. Our goal is simple. We want to lower the risk and raise the value of these underexplored basins,' Bacho said. He also noted growing international interest, with six Technical Evaluation Agreements (TEAs) signed this year with new entrants including ConocoPhillips, Pertamina and Posco International. Five PSCs were also awarded under the latest Malaysia Bid Round. In the deepwater space, recent development efforts have centred on high-impact projects in western and northwestern Sabah, including Gumusut-Kakap and Geronggong–Jagus East (GK-GJE) Phase 4. He said the initiative marks Malaysia's first cross-border deepwater collaboration with Brunei and has already yielded positive results. 'GK-GJE Phase 4 is more than a project. It is a precedent. This marks the first time the two nations have jointly developed a deepwater field, and the outcome exceeded expectations,' he said. Other active fields under expansion include Kikeh Phase 3B, Block H Phase 1B and Kinabalu NAG Phase 3, which are collectively expected to unlock approximately 150 million barrels of oil equivalent, supported by over RM9 billion in capital spending. On the exploration front, Bacho confirmed three significant finds. Megah-1, drilled in ultra-deepwater, reached a total depth of 4.7 kilometres. The Bilit Deep-1 and Zoisit-1 wells, both located in the SB409 contract area, are part of a cluster that could meet future domestic gas needs well beyond 2030. 'These discoveries are among our most promising in recent years. They represent the next chapter in the region's upstream story and reinforce the importance of continued eastward expansion,' he said. Further downstream, a key milestone this year has been the delivery of natural gas to Esteel Sabah, supporting operations at the state's first low-carbon steel facility. Phase One of the plant was launched in May, following a gas supply agreement signed earlier between the national oil company and Sabah Energy Corporation. 'Subject to volume availability, Esteel has the potential to become the largest low-carbon steel facility in the world, and it is based right here in the state,' he said. The project is part of the broader Sabah Gas Strategy, co-developed under the Sabah Joint Coordination Committee, which also includes SMJ Energy, SEC and the Energy Commission. 'The long-term framework aims to ensure stable and sustainable gas supply for local consumption while enabling large-scale industrial development. 'It is a coordinated approach to gas monetisation, aligning energy availability with future-ready manufacturing growth,' Bacho said. Sabah's prominence in the global LNG supply chain also continues to rise. In addition to housing Malaysia's only two floating LNG facilities, a third known as ZLNG is expected to begin operations by 2027. 'With ZLNG coming online, this state will strengthen its position on the global LNG supply map. This is not a local story. It is about contributing to global energy security,' he said. He also revealed that Petronas is preparing to deliver its first LNG cargo from Canada this weekend, further diversifying its international gas portfolio. 'We now have supply nodes from Canada to Australia. And this weekend marks a new chapter. Our first cargo from Canada is ready to sail,' he added. Bacho highlighted Petronas' long-term investment in talent and local capability. 'We're not just investing in reserves and infrastructure. We're investing in people,' he said. He emphasised that the focus is on building a sustainable ecosystem that benefits not only the company but also the state and its future. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
03-07-2025
- Business
- Daily Express
100pc jump in Sabah OGSE participation target: Chief Minister
Published on: Friday, July 04, 2025 Published on: Fri, Jul 04, 2025 By: Larry Ralon Text Size: Phoong (standing, second left) representing the Chief Minister in witnessing one of the signings documents, while Petronas' Malaysia Petroleum Management (MPM) Senior Vice President Datuk Ir Bacho Pilong (standing, second right), Industrial Development and Entrepreneurship Ministry's Permanent Secretary Datuk Thomas Logijin (standing, right) look on. Kota Kinabalu: The State Government jointly with Petronas and industry partners has set a target of 100 per cent increase in Oil and Gas Services and Equipment (OGSE) contracts for Sabah companies this year, said Chief Minister Datuk Seri Hajiji Noor. 'In terms of employment, the target is clear: 100 per cent of non-technical roles and at least 80 per cent of technical roles in the OGSE sector must be filled by Sabahans. Advertisement 'These targets reflect our firm commitment to strengthening local participation and building a resilient, home-grown energy ecosystem,' he said at the 12th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE), Thursday. His speech was read by State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe. In 2021, Hajiji said the total contracts awarded to Sabah companies for local oil and gas services jobs stood at RM341 million, while by the end of last year, it soared to over RM2 billion for jobs awarded both in and outside Sabah. He said Sabah's oil and gas industry is an essential pillar of the state's economic growth, and continues to play a pivotal role to that of Malaysia's, contributing nearly 40 per cent of the country's oil production and approximately 20 per cent of its gas output. 'However, we believe our role must extend beyond mere production. We aspire for Sabah to become a centre of excellence for OGSE innovation and sustainable energy practices and a hub where investment, talent and technology converge to create long-term value,' he said. Hajiji said the State Government through SMJ Energy has taken decisive steps in securing equity in key upstream and downstream assets, including the Samarang PSC and the Samur petrochemical plant, as well as interests in exploration blocks SB403, SB409, SB306A and SB306B. He said Sabah Energy Corporation (SEC) has also strengthened its position as Malaysia's largest domestic supplier and transporter of natural gas, following its successful takeover of Petronas' onshore gas contracts in Sabah. 'I wish to take this opportunity to thank Petronas and all our operating partners in Sabah for your continuous efforts, commitment and investment in local content development. The Commercial Collaboration Agreement (CCA) signed in December 2021 with Petronas was significant and its implementation through initiatives such as the subcommittee for OGSE industry, co-chaired by the Sabah Industrial Development and Entrepreneurship Ministry and Petronas, has yielded tangible results. 'To sustain this momentum, we have established the Sabah Local Content Council under the purview of SMJ Energy and implemented a Joint Task Force for Mandatory Partnerships. 'These initiatives, coupled with the transparent insights provided by the Kinabalu Activity Outlook (KAO), are designed to ensure our local companies are well-informed, well-prepared and well-partnered for success,' he said. Hajiji commended the Sabah Oil and Gas Services Council (SOGSC) and the Persatuan Kontraktor Petroleum Bumiputera Sabah (PKPBS) for their role in championing Sabahan participation in the OGSE sector. He also called on everyone to support the effort of the SOGSC and PKPBS to organise this OGSE conference next year. 'Our vision is to build a pipeline of OGSE opportunities that extends far beyond short-term contracts. We want to promote knowledge transfer, technology exchange and joint ventures that scale our local players into regional champions. 'We are laying the foundations now not just for current prosperity but for a resilient, innovative and sustainable OGSE ecosystem for generations to come. 'Hence, let us work together to ensure Sabah not only remains a key energy player but becomes a model for sustainable, inclusive growth in the oil, gas and energy industry,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
03-07-2025
- Business
- Daily Express
Petronas to invest RM500 million a year in Sabah upstream O&G
Published on: Thursday, July 03, 2025 Published on: Thu, Jul 03, 2025 By: Sisca Humphrey Text Size: KOTA KINABALU: Petronas has announced a stronger push into Sabah's upstream oil and gas sector, with renewed emphasis on frontier basins, deepwater projects, and gas monetisation. At the 12th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE) 2025, Petronas Senior Vice President Datuk Bacho Pilong ( pic ) said the Semporna Basin will be renamed the Tawau Basin to reflect growing interest in Sabah's southeastern offshore prospects. The company will invest RM500 million annually until 2030 in basin exploration and development, including making 3D seismic data for Block SB505 freely available to qualified bidders. New exploration finds - Megah-1, Bilit Deep-1, and Zoisit-1 - could support domestic gas supply beyond 2030, while deepwater projects such as GK-GJE Phase 4 represent cross-border collaboration with Brunei. Further downstream, Petronas has begun gas delivery to Esteel Sabah's low-carbon steel plant and expects Sabah's third floating LNG facility, ZLNG, to begin operations by 2027. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
