The Sabah government will take a 30 per cent stake in two new oil and gas fields off the state’s east coast, Chief Minister Datuk Seri Hajiji Noor announced.
He said the state was also in the final stages of acquiring a 40 per cent equity interest in a floating liquefied natural gas (LNG) facility project in Sabah.
“The agreement for this partnership will be signed soon. The government will also develop new industrial parks, including in Kota Belud, and a blue economy hub in Kudat to further boost investment in the state and increase domestic economic activity,” he said at Upko’s 32nd anniversary celebration and the opening of the party’s 17th Triennial Conference.
Hajiji, who also chairs Gabungan Rakyat Sabah (GRS), said the move forms part of the state government’s efforts to deepen its role in the oil and gas industry through strategic collaboration with Petronas under the Commercial Collaborative Agreement.
He noted that the partnership had boosted the state’s equity holdings in oil and gas exploration and development in Sabah, while opening up opportunities for local companies to participate in the sector.
Hajiji said the state government remains focused on strengthening its financial standing and boosting revenue collection as a key pillar of Sabah’s development. Annual revenue has held steady at around RM7 billion since 2022, he said, and is projected to rise to RM8 billion this year.
“In 2025 alone, RM7.6 billion in investment value in the manufacturing sector was recorded, almost 208 per cent against 2024,” he said.
He attributed the achievement partly to Sabah’s economic resilience amid various domestic and global challenges, which he said has further cemented its position as a strategic investment destination.
