“There’s now a different platform to ensure that the state has a greater say in how the gas should be developed and allocated, either for industry, for power, or for export,” SMJ Energy Sdn Bhd CEO Dionysia Kibat said.

Dionysia said the Sabah Gas Strategy 2024 – Long Term Gas Supply and Delivery Plan launched recently is a direct result of this strategic collaboration.

The plan, jointly developed by Petronas and the Sabah government, outlines a long-term and structured blueprint to secure reliable gas supply for the state’s expanding domestic demand, while enabling sustainable industrial growth.

“That plan was the first true creation; the baby of that platform,” Dionysia told FMT in an interview, noting that oil and gas (O&G) development must be discussed extensively because it cannot be executed without proper planning.

“When to develop it and when it should be developed depends on whether you have a firm onshore demand.

“If there is no firm onshore demand, upstream players cannot proceed, because gas requires a long-term commitment, typically a 20-year contract. The offshore supply must also be sustained consistently over that period to make the project viable.”

The Energy Commission of Sabah (ECoS) was heavily involved as well, according to Dionysia, to ensure investment attractiveness.

“Once you have power, then only industry will come in. If you have industry but no power, there is no point, right? The mandate has to be: you must have power first, then only go for industry,” she said.

Dionysia said careful planning is now more crucial than ever amid rising petroleum costs.

“We know that gas prices won’t be cheaper in the future, as most of the shallow-water reserves have already been explored or developed. The cost of extraction is high, so it’s essential to ensure that demand and supply are balanced at a fair price,” she said.

She said these challenges remain even when Sabah has abundant natural resources and requires “extensive discussion, compromise, and a lot of negotiation” with multiple parties, including regulators and investors.

Dionysia said the CCA makes a world of difference in terms of greater say, alongside greater revenue and greater participation.

“Without this CCA, I would say we may not be able to gain what we are having now, not only in terms of the (O&G asset) acquisition, but also in terms of the multiplier effect such as (the boom in) oil and gas services and equipment, and employment and ripple effects enjoyed by related industries.

“Previously, when it came to gas resources, it was business as usual, and you just waited and received. But with the CCA, we have a platform.

“It’s good that Petronas gave us a platform. Collaboration …, cooperation is more important than any other thing in business,” she said.

Increasing investor interest

Dionysia said global investors watch for alignment and clarity when deciding where to put their money.

She said the steady commercial collaboration with Petronas and political stability have translated into foreign oil companies, such as Conoco, PTTEP, and INPEX, coming to Sabah for business opportunities.

“Credit must go to Petronas, for its ability to attract leading international oil companies. But for investors to commit, they also need to see stability in the state,” she said, adding that investors are concerned about making good profit, and safe business environments.

“(These companies think) if your state is not safe, your people are not investor-friendly, why should I invest in you? I have other parts of the region (to invest in).”

She said SMJ Energy plays a big part in attracting business, reassuring investors of the available resources and opportunities, and strengthening the overall investment ecosystem.

She also credited Petronas for facilitating investments into Sabah, such as by doing seismic studies and making data on possible O&G fields available so potential investors can make informed decisions.

“We were told that a few more investors have expressed interest (in coming to Sabah). I cannot disclose (their identities) now, but we are working on it together with Petronas,” she said.