KOTA KINABALU: Sabah targets to obtain RM1 billion local contract awards or 20 percent of the total oil and gas contracts awarded this year.
State Chief Minister Datuk Seri Hajiji Noor said the target would increase to 30 per cent for next year.
"To date, local contract awards have reached RM564 million, equivalent to 11 per cent total spend in 2022.
"We are equally serious in the recruitment and development of local talents in this sector, and it is a key priority for Sabah," he said at the 10th Sabah Oil, Gas and Energy Conference and Exhibition (SOGCE) held at the Sabah International Convention Centre (SICC) here.
Hajiji added the requirements for local content were aimed at creating jobs, promoting local enterprise development and accelerating the transfer of skills and technologies, particularly for the oil and gas sector.
He also said Sabah was targeting to acquire additional upstream and Liquefied Natural Gas (LNG)-producing assets and would consider suitable green energy opportunities at the same time.
"While oil and gas will provide an important revenue stream for the state, we also welcome investors to explore renewables such as solar and storage technologies, hydro, geothermal, and also carbon market opportunities in Sabah.
As of December 2022, Sabah has achieved RM6.96 billion in revenue, the highest recorded thus far.
"This represented a 28 per cent increase from the previous year's achievement of RM5.449 billion.
"We will not rest on our laurels but will continue to implement a robust policy to bring in more investments to the state, create more economic spin-offs and double our efforts to generate more revenue through new and innovative means and resources," he said.