Sabah govt open to discussions with O&G players
0 month ago, 11-Jul-2019
Datuk Seri Mohd Shafie Apdal – File photo
KOTA KINABALU: The Sabah state government is open to discussions with industry players to ensure they can take the oil and gas (O&G) industry to even higher levels of success and create employment opportunities for locals.
Chief Minister Datuk Seri Mohd Shafie Apdal said the state government wantedsolid partnerships and strategic collaborations that couldsteer the course of this lucrative industryonto the path to success.
To fully reap the enormous benefits ofthis sector, we must address the challenges that are synonymous with itin Sabah, he said at the launch of the Sabah Oil and Gas Conference and Exhibition (SOGCE), here today.
He said the stategovernment had in December last year amended the Mining Ordinance 1960 to the Mining (Amendment) Enactment 2018 to better manage income from Sabahs mineral resources such as oil and gas.
Mohd Shafie said the amendment also allowedSabah to collect sales tax on natural resources extracted from its waters, as well as revenue from petroleum products.
The move could further boost the O&Gindustry in Sabah, he added.
The chief minister said according to the Oil & Gas Journal (OGJ), Malaysia heldoil reserves of 3.6 billion barrels as of January 2017, the fourth highest reserves in the Asia Pacific.
He said with major oil and gasdeposits, Sabah hadlong been a key part of Malaysias O&Gindustry.
The industry is a strong driver of the national economy and Sabahs revenue is considerably derived from oil and gas, he said.
He added the federalgovernment wasalso been keen on the need for Sabahs O&Gindustry to further diversify its product range, andleverage the states strategic location to attract more oil and gas companies, investors and traders.
Sabahs location at the South China Sea and its major role in the domestic O&G industry are factors that assure this industry continues to be a significant contributor to the states economic growth, Mohd Shafie said. – Bernama