By Olivia Miwil
February 12, 2026 @ 4:02pm
KOTA KINABALU: Sabah has set a firm target of 60 per cent participation through direct contract ownership in all oil and gas services and equipment (OGSE) activities in the state.
Sabah deputy chief minister Datuk Seri Masidi Manjun said participation would be achieved through direct contracts, equity ownership or joint ventures.
"The state will no longer play a minor role in decisions and activities involving its own resources.
"Our direction is clear: Sabah must progressively move towards majority participation and leadership in activities within our state," said Masidi, who is also the state finance minister.
His speech was delivered by assistant finance minister Datuk Mohd Ishak Ayub at the Sabah OGSE recognition ceremony hosted by Petroliam Nasional Bhd (Petronas) at the Sabah International Convention Centre here.
Masidi said that as Sabah vendors gain greater access to contracts, accountability must follow.
"The state is serious about ensuring that contracts awarded to Sabah vendors are genuinely executed by Sabah vendors.
"We will not tolerate 'Ali-Baba' practices that dilute capability development and disadvantage legitimate local players committed to building real capacity and delivering value," he said.
He also thanked Petronas for its continued commitment to Sabah through initiatives such as expanding the vendor development programme to include more Sabah companies and the vendor financing programme, which has unlocked over RM128 million for local players.
To date, 98 Sabah-based OGSE vendors have been recognised for their capabilities and track record in securing contracts.
Present were Petronas senior vice president Datuk Bacho Pilong and group procurement vice president Rashidah Alias.
Earlier, Petronas and the Sabah government recognised OGSE vendors for their role in fostering a sustainable and competitive local ecosystem.
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