Sabah Secures Major Oil and Gas Deals with Petronas

Sabah is poised to receive a significant boost in oil and gas revenue following two major agreements signed between the state government and Petronas. The first agreement will see Sabah secure a 40% stake in the third Floating Liquefied Natural Gas (FLNG) facility project, while the second will grant the state a 20% stake in a newly discovered oil and gas field off Sandakan.

Chief Minister Datuk Seri Hajiji Noor described the agreements as major achievements under the Gabungan Rakyat Sabah (GRS) administration, resulting from close cooperation between the State and Federal governments. The development was also the outcome of a cooperation agreement previously signed with Petronas, enabling the Sabah Government to play an active role in the state's oil and gas industry.

The third FLNG project is currently under construction at the Sipitang Oil and Gas Industrial Park (SOGIP) and is targeted for commissioning in the second half of 2027. It will have a production capacity of 2.0 million tonnes per annum (MTPA). Sabah currently has two operational FLNGs offshore, with the third nearshore project under construction.