The oil and gas sector is the mainstay of Malaysia’s growth since oil was first drilled in 1910 in Sarawak. Furthermore, the founding of PETRONAS in 1974 is the force for the development of the oil and gas resources and plays a major role in driving the industry’s growth in Malaysia. Malaysia is one of the world’s largest natural gas and crude oil reserves in which Sabah has about 13.22 trillion cubic feet (tcf) of gas. Latest discovery of oil offshore of Sabah, initial estimates put the well’s reserves at 227 million barrels of oil equivalent. Sabah has the potential for deep water exploration, oil and gas services and integrated petrochemical. One of the major projects in Sabah is located at Mengalong, Sipitang which is 145 km from Kota Kinabalu.
Sipitang is a town, district and also a parliamentary constituency located in the Interior Division of Sabah with a population of 34,862. The town is set to become one of Sabah’s oil and gas industrial centres following the state government’s decision to build a world class integrated industrial park designated for oil and gas related and other heavy industries through industrial clustering.
The Sabah State Government has recognized that the growth in the oil and gas industry is vital to the social and economic development of Sabah and Malaysia. Realizing the potential of this industry in accelerating state development, the State Government is committed to participate directly in this industry. It has, therefore, taken a proactive and strategic approach in the development of O&G industry, particularly in its downstream activities.