SOGIP to serve as key catalyst for growth of energy sector — Hajiji
18 Feb 2025
The Sipitang Oil and Gas Industrial Park (SOGIP) will serve as a key catalyst for the growth of the energy sector, which is crucial for Sabah’s continued economic development, said Chief Minister Datuk Seri Panglima Hajiji Noor.
SOGIP, he pointed out, has attracted numerous investments, including high-impact projects, such as Esteel’s Green Steel plant, which involves a phased investment of RM20 billion.
Most recently, an Energy, Oil, and Gas Hub project worth RM8.88 billion (USD2 billion) has been announced and the joint venture between Sabah Oil and Gas Development Corporation (SOGDC) which manages SOGIP and Gibson Shipbrokers Limited will position Sabah as a key energy hub in Southeast Asia.
For this reason, he said, the Sabah government remains committed to fully supporting investments that bring long-term benefits to the people of Sabah.
“I am confident that the success of this project will spur growth in the oil and gas industry, ultimately establishing Sabah as a competitive energy hub at the international level.”
“We are fortunate that Sabah is rich in natural resources, including forests, minerals, fauna, flora and marine life. Our strategic location, stable political environment, abundant natural resources, and diverse economy make Sabah an attractive destination for foreign investors,” Hajiji said when officiating the launch of the Petroleum Storage and Refining Plant Construction Project at SOGIP on Tuesday.
According to Hajiji, Sabah holds great potential in oil and gas resources, and the construction of the Petroleum Storage and Refining Plant by Petroventure Energy Sdn Bhd, set to begin in April, will significantly contribute to the state’s economic growth.
The project will involve the construction of a refinery with a capacity of up to 150,000 barrels per day (BPD) and oil storage facilities capable of holding three million cubic meters of crude oil and refined petroleum products.
“This is yet another strategic new investment that will undoubtedly reinforce Sabah’s position as an oil and gas industrial hub in the region,” said the Chief Minister, adding that with 400 acres of land allocated for the project at SOGIP, it is expected to attract over USD 3.5 billion (RM15.5 billion) in foreign direct investment (FDI) and create nearly 5,000 job opportunities for the people of Sabah.
During the construction phase, the project is estimated to require more than 3,000 workers, while the fully operational plant will provide permanent employment for over 1,000 workers.
“All of this is a positive indicator of our efforts to create employment opportunities for our people. I have always emphasized the importance of prioritizing local Sabahans in the workforce for all projects and operations in the state. I expect all industry players to adhere to this fundamental requirement as a key principle in our commitment to local development,” he stressed.
The project will also include the development of a jetty, oil grading facilities, a petroleum testing laboratory, and an administrative building.
Hajiji expressed confidence that Petroventure’s various environmental studies, including the Environmental Impact Assessment (EIA), will ensure that the project is developed sustainably, aligning with industry requirements and the state government’s environmental priorities.
Speaking to the media later, Hajiji said that the collaboration between SOGIP and Petroventure Energy Sdn Bhd at SOGIP is another effort to prioritize industrial growth in Sabah.
“I am very pleased that our long-term vision is progressing and succeeding day by day. This initiative will create job opportunities for local talents and boost our economy.
“We have an investor-friendly policy, but we prioritize local investors. However, we also welcome foreign investors, especially those with expertise in certain areas. The most important thing is that their investments bring benefits to Sabah,” he said.
Source: The Borneo Post
