Sabah Shell Petroleum Company Ltd. (SSPC) awarded two significant asset operations contracts to Neopetro Sdn Bhd. and SAZMA Aviation, both Sabah-based companies. The contracts were signed by Wong Kim Mun, SSPC’s general manager, during the Sabah Oil, Gas, & Energy Conference and Exhibition (SOGCE) in Kota Kinabalu. The signing ceremony was attended by Datuk Seri Panglima Hj Masidi Manjun, Sabah Minister of Finance and Chairman of state-owned SMJ Energy Sdn Bhd; Siti Sulaiman, Country Chair of Shell Malaysia and Senior Vice President of Upstream Malaysia; and Datuk Bacho Pilong, Senior Vice President of Malaysia Petroleum Management (MPM), PETRONAS.
Neopetro Sdn Bhd received a contract to provide an accommodation vessel to house over 500 personnel during the Gumusut-Kakap platform’s turnaround campaign this year.
SAZMA Aviation, a subsidiary of Sabah Air Aviation Sdn Bhd under the Sabah Ministry of Finance, was awarded a contract for offshore helicopter services to transport personnel to and from offshore locations safely.
Datuk Seri Panglima Hj Masidi Manjun highlighted the significance of these contracts, emphasising Shell’s commitment to Sabah’s socio-economic development. He noted a 40% revenue increase for Sabahan companies from OGSE-related jobs between 2022 and 2023 and expressed an aim for an 80% Sabahan employment rate in the OGSE industry by the end of the year. Achieving this target requires cooperation between the Sabah government, OGSE stakeholders, contractors, and both state and private agencies.
Siti Sulaiman echoed these sentiments, stating that these contracts represent a milestone in developing and supporting local Sabahan contractors. She underscored Shell’s commitment to collaborating with the Sabah government and PETRONAS through Malaysia Petroleum Management to enhance local players’ participation and capabilities in the energy industry.
The ceremony was also attended by Datuk Harun Ismail, JP, Managing Director and Chief Executive Officer of Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC), and Dolly Jimayol, organiser of SOGCE.
These contracts underscore a strategic move to bolster the local energy industry, reflecting a long-term approach to fostering local expertise and economic growth in Sabah. The collaboration between SSPC, local contractors, and the Sabah government is set to drive improvements and capability development, marking a significant step towards achieving substantial local participation in the OGSE sector. Investors and stakeholders in Sabah’s energy sector are encouraged to view these developments as a positive indication of the region’s growing competence and potential in the industry.
